Mortgage Rates Today, Friday, October 2: A Little Lower, Still Above 7%

After climbing all week, mortgage rates eased today — though in a high rate environment, it’s not much of a drop.

The average interest rate on a 30-year, fixed-rate mortgage ticked down to 7.41% APR, according to rates provided to NerdWallet by Zillow. This is three basis points lower than yesterday but 27 basis points higher than a week ago. (See our chart below for more specifics.) A basis point is one one-hundredth of a percentage point.

Meanwhile this morning, we got fresh jobs data for September from the Bureau of Labor Statistics. Employers added fewer jobs than expected and the unemployment rate ticked up to 4.2%, signaling weakness in the labor market. Coupled with softer than expected inflation data in August’s Personal Consumption Expenditures index, it’s looking less likely that the Federal Reserve will hike its benchmark rate in October.

“The data was also enough to slow the bond market’s roll, at least for a moment, so we’ll likely see slightly softer mortgage rates,” says Kate Wood, lending expert at NerdWallet. “But think dip, not dive — and mortgage rates have already risen so much this week that honestly it’s unlikely to even be that much of a dip.”

While the economy never sleeps, markets are closed on the weekends. The rates you see Friday are unlikely to change much (if at all) until Monday.

The larger forces spooking the bond market, like U.S. government borrowing and big tech’s spending spree on AI and data centers, aren’t going away anytime soon. Meanwhile, the war in Iran continues to strain global oil supplies, keeping inflation pressure — and mortgage rates — high.

For mortgage borrowers, expectations that the Fed will hold rates steady could bring a little short-term relief. But don’t expect a dramatic drop: The larger forces pushing up long-term borrowing costs aren’t likely to ease soon. If you’re shopping now, build your budget around today’s higher rates — and treat any dip as a welcome bonus, not a guarantee.

And if you’ve been hoping to refinance … well, patience is a virtue. 😬

Refinancing might make sense if today’s rates are at least 0.5 to 0.75 of a percentage point lower than your current rate (and if you plan to stay in your home long enough to break even on closing costs).

With rates where they are right now, you could start considering a refi if your current rate is around 7.91% or higher — but there aren’t too many folks for whom that’s true.

There is no universal “right” time to start shopping — what matters is whether you can comfortably afford a mortgage now at today’s rates.

Rate locks protect you from increases while your loan is processed, and with the market forever bouncing around, that peace of mind can be worth it.

In addition to market factors outside of your control, your customized quote depends on your:

Even two people with similar credit scores might get different rates, depending on their overall financial profiles.

Maybe — but even personalized rate quotes can change until you lock. That’s because lenders adjust pricing multiple times a day in response to market changes.

Addas a preferred source on Google