Mortgage Rates Today, September 3, 2026: Treasury Yields Ease but Fed Hike Risk Keeps Rates High

Mortgage rates are getting some relief from falling Treasury yields early Thursday, September 3, but borrowing costs remain near their highest levels in more than a year. The key issue for homebuyers is simple: the bond market has calmed after a sharp selloff, but investors still believe the Federal Reserve could raise interest rates this month.

The latest available daily mortgage data showed the average top-tier 30-year fixed rate at 6.91% on September 2, according to Mortgage News Daily. That was up from the previous day and put many real-world borrowers at or above the 7% mark once loan details and upfront costs are included. The latest daily national rate readings were:

• 30-year fixed mortgage: 6.91%
• 15-year fixed mortgage: 6.50%
• 30-year jumbo mortgage: 7.00%
• 7/6 SOFR adjustable-rate mortgage: 6.51%
• 30-year FHA mortgage: 6.45%
• 30-year VA mortgage: 6.47%

Those rates were last updated September 2 and can change during the trading day as Treasury yields and mortgage-backed securities move. Mortgage News Daily’s index also accounts for upfront costs, which is one reason it can differ from Freddie Mac’s weekly survey.

For buyers following the rapid changes this week, Wednesday’s mortgage rates report showed the 30-year rate pushing toward 7% as Treasury yields remained elevated. The move followed another difficult session for the bond market. Conditions improved somewhat early Thursday.

Global government bonds rallied and benchmark U.S. yields moved lower as investors waited for new U.S. economic data and comments from Federal Reserve officials. Reuters reported that Treasury yields were retreating from recent highs after a severe global bond selloff.

That matters because mortgage rates do not move directly with the Federal Reserve’s overnight policy rate. They tend to follow longer-term bond yields, especially the 10-year Treasury, along with mortgage-backed securities, lender costs and borrower risk. Official Treasury data show how much pressure built earlier this week. The U.S. Treasury’s closing yield curve showed:

• August 28 10-year Treasury yield: 4.59%
• August 31 10-year Treasury yield: 4.62%
• September 1 10-year Treasury yield: 4.66%
• September 2 10-year Treasury yield: 4.66%
• September 2 2-year Treasury yield: 4.45%
• September 2 30-year Treasury yield: 5.27%

The official Treasury data show that longer-term borrowing costs remain high even after Thursday morning’s market relief. That is why one day of falling yields does not automatically mean a major mortgage-rate drop.

The last published Freddie Mac weekly survey before Thursday showed the average 30-year fixed mortgage at 6.66% for the week ending August 27, up slightly from 6.65% a week earlier. The 15-year fixed rate averaged 5.98%, compared with 5.95% the previous week. Freddie Mac’s latest completed weekly figures were:

• 30-year fixed: 6.66%
• Previous week: 6.65%
• One year earlier: 6.56%
• 15-year fixed: 5.98%
• Previous week: 5.95%

Freddie Mac typically publishes its Primary Mortgage Market Survey on Thursdays. Its September 3 weekly figure had not yet been released early Thursday when this report was prepared, so the August 27 reading remains the latest official weekly average available.

The Freddie Mac survey is based on thousands of mortgage applications submitted through its Loan Product Advisor system. The biggest threat to lower mortgage rates remains the Federal Reserve.

Financial markets on Thursday were still pricing a strong probability that the Fed will increase its benchmark rate at its September 15–16 meeting. Reuters reported probabilities around 60% to 67% in Thursday market coverage, although those odds can move quickly as economic data changes. The Fed’s current target range is:

• Federal funds target range: 3.50% to 3.75%
• Interest paid on reserve balances: 3.65%
• Standing overnight repo rate: 3.75%
• Overnight reverse repo offering rate: 3.50%

The Fed left rates unchanged at its July 28–29 meeting, but three policymakers voted for a quarter-point increase. The central bank said inflation remained above its 2% goal and emphasized its commitment to restoring price stability. The official Fed statement shows the target range remains at 3.50% to 3.75%. The next scheduled decision is September 16.

Fed Chair Kevin Warsh has also warned that policymakers may need to raise rates if they do not gain enough confidence that inflation is moving back toward 2%. That message helped drive expectations for tighter policy and contributed to recent pressure across bond markets.

The housing market therefore faces two competing forces. Treasury yields are easing today, which can help mortgage pricing if the move lasts. But inflation risks, high oil prices and the possibility of another Fed increase are keeping investors cautious.

Reuters reported Thursday that Brent crude remained above $90 a barrel as geopolitical tensions continued. Higher energy costs matter because a renewed inflation shock could make the Fed more willing to tighten policy.

The Fed’s latest Beige Book also said U.S. economic activity had increased modestly, employment edged higher and prices continued to rise moderately. That gives policymakers little reason to declare the inflation fight finished.

For buyers, the difference between a mortgage rate near 6.5% and one near 7% can materially change the monthly payment. For example, on a $400,000 30-year fixed mortgage, excluding taxes, insurance and fees:

• At 6.50%: about $2,528 per month
• At 6.75%: about $2,594 per month
• At 7.00%: about $2,661 per month
• Difference between 6.50% and 7.00%: about $133 per month
• Approximate difference over 12 months: about $1,596

That is why borrowers should compare both the quoted interest rate and the annual percentage rate, or APR. Discount points, lender fees, credit scores, down payments and loan types can produce very different offers even on the same day.

Borrowers who want more historical context can compare the current market with September 1 rates, when rising Fed hike expectations were already putting pressure on home loans.

Earlier Treasury actions also produced a temporary rate dip, showing how quickly mortgage pricing can react when the bond market changes direction.

Rates can also vary substantially by location, lender and borrower profile. Buyers in high-cost markets can review New York rates for a closer look at state-level mortgage conditions.

The broader issue is that today’s mortgage market remains expensive compared with the levels many buyers became used to before the recent increase in bond yields. The move toward the highest borrowing costs in more than a year has already created another affordability challenge for buyers, as covered in Investozora News’ report on the one-year high. The next major test comes from U.S. labor data.

Investors are watching Friday’s employment report because a strong jobs number could reinforce expectations for a September Fed hike and push Treasury yields higher again.

A weaker report could reduce those expectations and give bonds and potentially mortgage rates more room to recover. Reuters reported Thursday that investors were positioning ahead of the jobs report while awaiting comments from senior Fed officials.

For homebuyers on September 3, the clearest takeaway is that the bond market is finally showing some relief, but mortgage rates have not yet broken decisively lower.

The latest daily 30-year rate remains 6.91%, the latest Freddie Mac weekly average remains 6.66%, and the 10-year Treasury closed Wednesday at 4.66%. Treasury yields are easing early Thursday, but markets still see a significant chance of a Federal Reserve hike this month.

Until that outlook changes, buyers should expect mortgage rates to remain volatile and should compare several lenders rather than waiting for one headline rate to determine when they buy.