What 2026 Mortgage Rates Mean for Buyers and Sellers

Mortgage rates come up in almost every conversation I have with buyers and sellers right now. Some people are waiting for rates to drop. Some are wondering whether they missed their window. And sellers want to know what rates mean for the price their house will bring.

I'm not going to tell you where rates are headed. Nobody knows that for sure, and anyone who claims to is guessing. What I can do is show you how rates affect the numbers, so you can make a decision based on your own situation instead of the headlines.

One important note before we start: I'm a REALTOR®, not a lender. For your actual rate, loan options and payment, talk to a licensed mortgage lender.

Where rates are as of this writing

Freddie Mac publishes a weekly national average called the Primary Mortgage Market Survey. As of October 15, 2026, it showed the average 30-year fixed rate at 7.40%. A year earlier, the same survey showed 6.27%.

Two things to know about that number:

• It's a national average for a specific borrower profile: conventional loans with 20% down and excellent credit. Your rate could be higher or lower depending on your credit, down payment, loan type and the lender.
• It changes every week. By the time you read this, it may be different. You can check the current number at freddiemac.com/pmms.

How rates affect buying power

The easiest way to see what a rate change does is to run the same loan at two rates. The example below uses the two Freddie Mac averages above. It's an example, not a quote.

Example: the same $300,000 loan at two rates

Principal and interest only, 30-year fixed:

• At 6.27%: about $1,851 per month
• At 7.40%: about $2,077 per month

That's a difference of about $226 a month, or roughly $2,700 a year, on the same loan.

Keep in mind your full monthly payment will also include property taxes, homeowners insurance and possibly mortgage insurance or HOA dues. Those aren't in the numbers above.

Example: the same monthly budget at two rates

Now flip it around. Say you've decided you're comfortable with $2,000 a month for principal and interest. On a 30-year fixed loan:

• At 6.27%, that budget supports a loan of about $324,000
• At 7.40%, it supports about $289,000

Same budget, about $35,000 less loan. That's what people mean when they say higher rates cut buying power.

What this means for buyers

Don't build your plan around a rate you hope for

If you're waiting for a specific rate before you buy, ask yourself what happens if it doesn't come. Rates can go up as well as down. A plan that works at today's rate, with room to spare, is a safer plan.

Know your number before you shop

Get preapproved, and ask your lender to show you the payment at your rate, plus what it would look like if rates moved up or down a bit before you lock. Then shop in the price range where you're comfortable, not just the maximum you qualify for.

Ask your lender about your options

Depending on your situation, a lender may talk with you about things like rate locks, paying points to lower your rate, different loan types, or seller-paid concessions toward your closing costs. Each has tradeoffs, and a lender is the right person to walk you through them.

What this means for sellers

Your buyer is thinking about the payment

Most buyers shop by monthly payment, not just price. When rates are higher, the same price means a higher payment, and some buyers drop to a lower price range. That's one more reason pricing your home right from the start matters.

Concessions can be a tool

Some sellers offer a credit toward the buyer's closing costs, which the buyer may be able to use to buy down their rate, depending on the loan. Whether that makes sense depends on your home, your price and the offers you're getting. It's something we'd look at together.

Condition matters more when buyers are stretched

When a buyer's budget is tight, there's less left over for repairs after closing. A house that's clean and in good working order is easier to say yes to.

Should you wait?

I can't answer that for you, and I'd be skeptical of anyone who says they can without knowing your situation. Here are the questions I'd ask instead:

• Does the payment work for your budget at today's rate?
• How long do you plan to stay in the home?
• Do you have a reason to move now, like a job, a growing household or a lease ending?
• If you're selling, what does your next home cost, and how does the timing line up?

If the numbers work and your life calls for a move, rates alone aren't a reason to wait. If the numbers don't work yet, there's no shame in taking more time to save or improve your credit.

Let's look at your numbers

I'm happy to sit down, look at your situation and help you figure out a price range that makes sense. I'll point you to a lender for the loan side. Call or text me at (734) 999-7105, or book a time below.

*Rate source: Freddie Mac Primary Mortgage Market Survey, week of October 15, 2026 (freddiemac.com/pmms). Payment examples are principal and interest only, calculated on a 30-year fixed loan, rounded, and for illustration only.*