Mortgage Rates This Week – September 10, 2026

Mortgage rates moved higher this week as stronger-than-expected employment data, rising oil prices, and renewed inflation concerns pushed long-term Treasury yields higher. The 30-year fixed mortgage rate at the time of this post is 6.375%, with a 6.615% APR and 2.315 points, or 6.875% with a 6.902% APR and 0.124 points, for top-tier borrowers who put 25% down and have a credit score of 780 or higher. The 15-year fixed mortgage rate for the same category of borrowers is 5.625%, with a 6.010% APR and 2.297 points; or 6.250%, with a 6.342% APR and 0.430 points.

Last Friday’s August employment report changed the market’s outlook considerably. Nonfarm payrolls increased by 162,000, far above expectations for a gain of roughly 56,000 and the strongest monthly increase in five months. July payrolls were also revised from an initially reported loss of 23,000 to a gain of 21,000, while the unemployment rate held steady at 4.1% and labor force participation increased to 61.6%. The report eased concerns that the labor market was deteriorating rapidly and gave the Federal Reserve more room to focus on inflation at next week’s policy meeting.

The bond market reacted quickly. The 10-year Treasury yield moved higher following the employment report and continued rising this week as investors reassessed the likelihood of another Fed rate increase. Longer-term yields have also been pressured by renewed concerns around federal borrowing and rising energy prices. With oil prices climbing again amid escalating Middle East tensions, investors are increasingly focused on the possibility that higher energy costs will keep inflation elevated for longer.

This morning’s August Producer Price Index added to that inflation picture. Headline producer prices increased 0.4% for the month, matching expectations, while the annual rate accelerated to 5.4% from 4.8% in July. Energy prices were a major contributor, rising 4.2% during the month. The report did not deliver the upside surprise that could have pushed yields substantially higher on its own, but it confirmed that inflationary pressure remains significant heading into the Federal Reserve’s September meeting.

Tomorrow’s Consumer Price Index is now the most important remaining economic report before the Fed meets September 15-16. After the stronger August employment report, markets have become more open to another quarter-point rate increase, but the decision remains highly dependent on inflation. A hotter-than-expected CPI reading would strengthen the case for additional tightening, while a softer report could give policymakers more reason to hold rates steady despite the improvement in hiring.

For mortgage borrowers, the impact of this week’s shift is already visible. The 30-year fixed rate has moved from 6.125% last Thursday to 6.375% today, a quarter-percentage-point increase in one week. That movement is consistent with the broader national market: the average 30-year fixed mortgage rate rose to 6.85% for the week ending September 4, its highest level since June 2025, as Treasury yields moved higher.

Mortgage application activity also weakened as borrowing costs increased. Total applications fell 2.7% for the week ending September 4, while refinance applications declined 6% and purchase applications were nearly unchanged, falling 0.2%. Despite the weekly decline, purchase applications remained 4% higher than the same week a year ago, suggesting that some buyer demand remains even as higher rates continue to pressure affordability.

The September 15-16 FOMC meeting is now the immediate focus for financial markets. The combination of stronger employment, persistent inflation, rising energy prices, and elevated Treasury yields has shifted the balance compared with just one week ago, when labor-market weakness appeared to be the larger concern. Tomorrow’s CPI report will provide the final major inflation signal before policymakers meet, leaving mortgage rates particularly sensitive to any surprise in the data.

Fall Buying Season

As the housing market moves further into the fall buying season, buyers are facing higher borrowing costs than they were just one week ago. The move from 6.125% to 6.375% on the 30-year fixed illustrates how quickly mortgage pricing can change when economic data shifts expectations for Federal Reserve policy. At the same time, the seasonal slowdown in housing activity can create opportunities for buyers who remain active, particularly as competition typically eases from summer levels.

In Washington state specifically, increased inventory continues to give buyers more choices and negotiating leverage than they had during tighter markets in recent years. Motivated sellers may also be more willing to negotiate on price, closing costs, seller concessions, or rate buydowns as the market moves deeper into fall. A fully underwritten pre-approval can strengthen an offer when the right property appears, while rate buydowns and 7/1 ARM products remain worth modeling for buyers with a defined time horizon. With mortgage rates moving sharply in response to economic data, comparing the full cost of different financing structures remains more useful than waiting for a specific headline rate.

Current Mortgage Rates This Week for WA, OR, ID, CA, and CO From Sammamish Mortgage
09/10/2026

**Conforming assumptions – $800k Purchase Price, 25% Down, 800+ Credit
**Jumbo assumptions – $1.5MM Purchase Price, 25% Down, 800+ Credit

Washington State mortgage rates

Mortgage rates In Oregon

Mortgage rates in Idaho

Mortgage Rates for Colorado

California Mortgage Rates

National Average Mortgage Rates:

(State-specific rates sourced from Sammamish Mortgage – National Average rates sourced from Zillow)

Consumer Price Index, Consumer Sentiment & Inflation

Inflation is undoubtedly the most significant driver of interest rates. With that in mind, we continue to focus on inflation data and expectations going forward to gauge what we can expect to see in interest rates in the coming months. Inflation is re-accelerating above the Fed’s target of 2% as of March 2026. While current inflation numbers would typically warrant a lower Fed Funds Rate, the Fed has indicated that it wants to see the impact of tariffs before considering additional rate cuts.

Consumer Price Index (CPI) March = 0.9% – Annual = 3.3%  

Producer Price Index (PPI) March = 0.5% – Annual = 4.0%

Personal Consumption Expenditures (PCE) February = 0.4% – Annual = 2.8% 

Overall, it is difficult to predict what will happen with mortgage rates in the near term. With global economic turmoil, banking issues, inflation, and thus far a far more resilient economy than many expected, trying to predict rates from one day to the next to time a rate lock is almost impossible or at least requires luck. However, looking at a longer time horizon, it’s much easier to see that there is an excellent chance we could see rates move lower from current levels, providing an opportunity for recent and existing buyers to potentially refinance in the future.

See Current Rates

What the Fed rate hike means for borrowers, savers, and investors

When the Federal Reserve raises interest rates, it affects various aspects of the economy, including the housing market, savings, and investment.

For potential homebuyers, a Fed rate hike typically leads to an increase in mortgage rates in the early stages of a tightening cycle; however, if the market thinks the Fed rate increases will hurt the economy and cause inflation to decrease, mortgage rates can improve when the Fed raises the Fed Funds Rate. It’s important to note that the Fed does not control mortgage rates. Fed rate increases do directly impact credit card rates, car loans, and commercial loans, which are shorter in duration than a typical 30-year fixed mortgage.

For savers, a Fed rate hike may lead to higher returns on savings accounts and certificates of deposit (CDs). In addition, banks and other financial institutions may increase the interest rates they pay to savers to remain competitive, which can benefit savers looking to earn more on their savings.

A Fed rate hike may impact the stock and bond markets for investors. Typically, when interest rates rise, the value of stocks and bonds can fall as investors may shift their money to fixed-income investments with higher returns. However, the impact of a rate hike on the markets can be complex and depends on various factors, such as the overall state of the economy, inflation expectations, and global events.

Loan Limits Increased For 2026

Loan limits have increased for 2026. Each county in every state has its loan limit. That said, the new standard conforming loan limit is $832,750, and high balance limits in select high-priced areas can go up as high as $1,063,750 for 1-unit properties in 2026.

Visit our 2026 conforming loan limit pages for Washington State, Oregon, Idaho, California, and Colorado.

For FHA loan limits, see our 2026 FHA pages for Washington State, Idaho, Colorado, California, and Oregon.

Check out our mortgage loan limit tool for conventional, FHA, and VA loans.

Instant Mortgage Rate Quote

Ready to Apply For a Mortgage?

Do you have questions about rates this week and home loans? Or are you ready to apply for a mortgage to buy a home? If so, Sammamish Mortgage can help. We are a local mortgage company from Bellevue, Washington, serving the entire state, as well as Oregon, Idaho, California & Colorado. We offer many mortgage programs to buyers all over the Pacific Northwest and have been doing so since 1992. Our programs include the Diamond Homebuyer Program, Cash Buyer Program, and Bridge Loans. Contact us today with any questions you have about mortgages.