September 2026 was anticipated to be a period of declining mortgage interest rates, making home purchases more attainable. This optimism stemmed from the Federal Reserve’s decision to lower interest rates three times in the last four months of 2025. Contrary to expectations, however, rates have taken an upward turn. As of September 1, the average interest rate for a 30-year mortgage stands at 6.87%, as reported by Zillow, which is over a full percentage point higher than six months prior.
Despite the current rates being less than ideal, there are compelling reasons to consider locking in a mortgage rate now. Whether the rate is 6.87% or potentially lower through diligent research, securing a rate lock this September could be a prudent decision, even in the current high-rate environment. Here, we outline three reasons why taking this step may benefit prospective buyers.
Firstly, it is essential to assess the current mortgage rate offers available to you.
Securing a mortgage interest rate this September, despite the less favorable conditions, can prove advantageous. One significant factor is the strong possibility of a Federal Reserve interest rate increase during its upcoming meeting later this month. The CME Group’s FedWatch tool indicates a 66% chance of a rate hike on September 16. Consequently, what is viewed as a “high” average mortgage rate today could quickly become the “low” benchmark tomorrow.
By locking in a rate now, you will safeguard yourself against the impending rate hike. Should rates decrease prior to your closing, there is the option to unlock your current rate or consider refinancing later. Allowing today’s rates to pass unutilized could lead to costly consequences, potentially derailing your homebuying aspirations for an extended period.
Explore your options for mortgage rate locks today.
The anticipated Fed rate increase on September 16 does not imply that lenders will wait until that date to adjust their offerings upward. Many lenders may preemptively raise their rates even before the Fed’s official announcement, particularly if economic indicators such as inflation or unemployment reports suggest a higher likelihood of a rate hike. Therefore, locking in a mortgage rate prior to these adjustments can lead to savings and protection against any upward movements that may occur, possibly even before the conclusion of the Fed’s two-day meeting.
Moreover, a rate hike in September may not be an isolated event. The Federal Reserve has additional meetings scheduled for October and December, and an increase this month could signal the beginning of a new series of rate hikes rather than a rare occurrence. Locking in a rate allows you to avoid the uncertainty associated with this scenario, enabling you to move forward with your homebuying plans while having a clear understanding of your budget and purchasing power.
While securing a mortgage rate near 7% may not seem like a strategic or economical choice—especially in light of the significantly lower rates seen earlier this year and in previous years—the potential for a Fed rate increase this month, along with the likelihood that lenders may raise their rates beforehand, makes it a scenario worth considering. Be sure to familiarize yourself with your mortgage rate float-down options, as these can vary by lender, providing flexibility should rates unexpectedly decline.
Edited by Angelica Leicht
