When are mortgage rates going to drop? Or at least stop going up? Mortgage rates move for many reasons — Fed decisions, economic data and shifts in the bond market, to name a few — and understanding what's going on can help you see what may be ahead.

But the input doesn't guarantee the outcome: A finely tuned prediction using the most comprehensive data available can be upended by one unexpected market-moving event. So whether we're trying to look years, months or even just days ahead, we can only work with what we know now.

The goal here isn't to give you a vision of the future. It's for you to have clarity on what's happening now and what it could mean is coming next. That way, whether you're looking to buy or refinance, you can feel more confident about whether it's the right time for you to make a move.

» MORE: Is it a good time to buy a house?

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🔮 Mortgage rate predictions
📆 Where are mortgage rates headed in October?
🗞️ What's moving mortgage rates this week?
📈 What are mortgage rates now?

🔮 Mortgage rate predictions

No one can know exactly where mortgage rates will be next year, but the teams of economists that put out monthly forecasts for the average 30-year mortgage rate provide a well-informed benchmark. In the latest forecasts, everybody's projecting that mortgage rates will end the quarter a little below where they are now. Fannie Mae stood by their previous month's prediction, while the Mortgage Bankers Association went a little higher (10 basis points) and Wells Fargo went a lot higher (half a percentage point over their earlier prediction).

The percentages reflect predictions for the quarterly average rate for the 30-year, fixed-rate, conventional mortgage in Freddie Mac's weekly survey. The most recent predictions available are always those made the previous month: currently, that’s September.

One reason to take these predictions with a big grain of salt: They were made in early to mid September, before mortgage rates surged past 7%. I wouldn't be surprised to see upward revisions next month. Right now, Wells Fargo is forecasting the highest rates, and even those feel pretty optimistic.

If you're considering a home search, here's your takeaway: Everything is pointing toward a higher-for-longer rate environment. It's important to budget around what you can afford at today's interest rates. If you're hoping to refinance down the road, be aware that a "marry the house, date the rate" scenario may look more like a serious LTR than a couple of dinners out.

Are you a homeowner eyeing a refinance? Same deal. If your refi math starts mathing, make your move. We've seen occasional pockets of lower rates this year that put more folks in the money on a refi, but they've been brief.

📆 Where are mortgage rates headed in October?

At a month or less out, a prediction can point to specific forces that are already shaping mortgage rates today. Again though, you can't count out the unexpected. Mortgage rates looked poised to keep dropping back in March, then a war started.

Anyway. Here's where it looks like mortgage interest rates will go this month.

October is likely to see higher rates, as the yield on the 10-year Treasury (a key benchmark for mortgage rates) is reaching levels markets haven't seen in nearly 20 years. There are multiple forces pushing Treasury yields higher, and none seem to be in danger of abating.

Additionally, there's a distinct possibility that the Federal Reserve will raise the funds rate when they meet at the tail end of October. If data continues to come in showing a resilient labor market and unrelenting inflation, the small contingent that already believed more than one additional rate hike would be necessary this year could grow.

All told, it looks like mortgage rates will face considerable upward pressure in October.

» MORE: How the Fed affects mortgage rates

Mortgage loans from our partners

Latest prediction from ...	Q4 2026	Q1 2027	Q2 2027	Q3 2027
Fannie Mae	6.80%	6.70%	6.70%	6.70%
Mortgage Bankers Association	6.80%	6.80%	6.80%	6.70%
Wells Fargo	6.90%	6.85%	6.85%	6.80%

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Mortgage Interest Rates Forecast

🔮 Mortgage rate predictions

📆 Where are mortgage rates headed in October?

🗞️ What's moving mortgage rates this week?

🤓 Kate on Rates: September 24, 2026

📈 What are mortgage rates now?

NerdWallet's Homebuying Climate Index

You're our first priority.
Every time.