Mortgage rates rose for a sixth straight week. Freddie Mac's 30-year average reached 7.28% on October 1, the highest since November 2023. If you are buying or refinancing in Colorado this fall, here is what moved, what it costs and what I would do about it.
Key takeaways
- Freddie Mac's 30-year fixed average rose to 7.28%, from 7.03% a week earlier. The 15-year rose to 6.60%.
- The 10-year Treasury closed between 5.24% and 5.29% every day from September 28 to October 2.
- On a $500,000 loan, 7.28% costs about $313 a month more in principal and interest than last year's 6.34%.
- Jumbo contract rates are running at or slightly below conforming rates in the MBA's survey.
- The next Fed meeting is October 27–28. Plan your budget at today's rate, not a hoped-for drop.
Where rates stand
Freddie Mac's weekly survey has climbed every week since the start of September:
| Week of | 30-year fixed | 15-year fixed |
|---|---|---|
| Sept. 3 | 6.71% | 6.04% |
| Sept. 10 | 6.76% | 6.09% |
| Sept. 17 | 6.95% | 6.26% |
| Sept. 24 | 7.03% | 6.42% |
| Oct. 1 | 7.28% | 6.60% |
A year ago the 30-year averaged 6.34% and the 15-year 5.55%. Fox Business noted that 7.28% is the highest reading since November 22, 2023, when it was 7.29%.
The Mortgage Bankers Association's survey, which measures contract rates on applications, showed the same move. For the week ending September 25, it reported a 7.30% conforming 30-year rate, a 6.97% FHA rate and a 6.47% 5/1 ARM. "Mortgage rates jumped to their highest level in almost three years, pushing borrowers to the sidelines," said MBA Deputy Chief Economist Joel Kan, in the MBA's release. Refinance applications fell 9% on the week and purchase applications fell 4%.
Why rates keep climbing
Fixed mortgage rates follow longer-term bond yields more than the Fed's own rate. The Federal Reserve's H.15 release shows the 10-year Treasury closing at 5.24% on September 28, 5.29% on September 30 and 5.28% on October 2. A few things are holding yields up:
- The Fed is still leaning toward tighter policy. It raised its target range to 3.75%–4.00% on September 16. On October 1, Vice Chair Philip Jefferson said "inflation has been too high for too long" and that future moves would depend on "carefully examining trends in the data," in a speech at the University of Virginia.
- Inflation is cooling, but slowly. The August PCE report showed prices up 3.4% from a year earlier, and 3.0% excluding food and energy. That is still well above the Fed's 2% goal.
- A weak jobs report didn't bring relief. The September jobs report showed just 29,000 new jobs and 4.2% unemployment, with July and August revised down. Yields dipped on the news, then closed higher by the end of the day.
Put simply, slower hiring alone has not been enough to pull rates down while inflation stays elevated. The Fed's next decision comes on October 28.
What it costs in real dollars
Here is principal and interest on a 30-year fixed loan at last year's average, last week's average and this week's:
| Loan amount | 6.34% (Oct. 2025) | 7.03% (Sept. 24) | 7.28% (Oct. 1) |
|---|---|---|---|
| $500,000 | $3,108 | $3,337 | $3,421 |
| $800,000 | $4,973 | $5,339 | $5,474 |
| $1,200,000 | $7,459 | $8,008 | $8,211 |
Last week's jump adds about $84 a month on a $500,000 loan. Against a year ago, the gap is about $313 a month. Taxes, insurance and HOA dues come on top. Run your own numbers with our mortgage payment calculator.
What I would do now
If you're buying
Set your budget at today's rate. Colorado's market has been giving buyers more room on price and terms, so ask for seller credits and use them for a rate buydown where it makes sense. On conventional loans, the credit is capped by your down payment: 3% with less than 10% down, 6% with 10%–25% down and 9% with more than 25% down. Our September rate update walks through those tools in more detail.
Look at an ARM, honestly
The MBA's 5/1 ARM averaged 6.47%, about 0.8 points below the 30-year fixed, and ARMs rose to 10.3% of applications. On $500,000, that starting rate means about $3,150 a month instead of $3,421. The catch is that the rate adjusts after the fixed period. An ARM fits when you have a clear plan to sell or refinance within that period, not when the payment only works at the starting rate. See our ARM loan page for how the structures work.
Jumbo buyers: price both paths
In the same MBA survey, the jumbo 30-year rate averaged 7.27%, just under the 7.30% conforming rate. Buyers in Vail, Aspen, Summit County and Boulder should price a jumbo loan alongside a conforming loan with a larger down payment. Our Colorado jumbo loan guide lists the 2026 county limits.
If you already own
For most owners who locked in before 2022, nothing changes. If you are considering a refinance or a cash-out, today's rates make a home equity line worth comparing first, since it leaves your existing first mortgage in place.
What this means for you
I have financed Colorado homes for more than 30 years. Rate cycles like this one feel endless while you are in them, and then they turn. What works is the same in every cycle: buy a home whose payment works at today's rate, negotiate hard on terms, and treat a future refinance as a bonus rather than part of the plan.
Survey averages are a starting point, not a quote. Your rate depends on your credit, down payment, loan size and property. When you are ready to see your real numbers, start a pre-approval with Cedar Home Loans.
Sources
- Freddie Mac — Primary Mortgage Market Survey (October 1, 2026)
- Freddie Mac via GlobeNewswire — Mortgage Rates Average 7.28% (October 1, 2026)
- Fox Business — Mortgage rates (October 1, 2026)
- MBA — Mortgage Applications Decrease in Latest MBA Weekly Survey (September 30, 2026)
- Federal Reserve — H.15 Selected Interest Rates (October 5, 2026)
- Federal Reserve — Vice Chair Philip Jefferson speech (October 1, 2026)
- BEA — Personal Income and Outlays, August 2026 (September 30, 2026)
- BLS — The Employment Situation, September 2026 (October 2, 2026)
- Federal Reserve — FOMC meeting calendar
