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# Mortgage Rates Climb to Highest Level in Over a Year, Squeezing Local Homebuyers
- URL: https://www.tri-county-regional-news.com/mortgage-rates-climb-to-highest-level-in-over-a-year-squeezing-local-homebuyers/
- Published: 2026-10-03T21:21:05.000Z
- Updated: 2026-10-03T21:21:05.000Z
- Author: Southern Mountain Regional News

The average rate on a 30-year fixed mortgage reached 6.95% as of September 17 — the highest level since President Trump took office, according to Freddie Mac's Primary Mortgage Market Survey. The rate has now risen for four consecutive weeks, up from 6.76% the week prior and inching toward the psychologically significant 7% mark.

Meanwhile, the 15-year fixed-rate mortgage, often used by homeowners refinancing or seeking to pay off their loan faster, averaged 6.26% — also its highest point since January 2025.

**What's driving the increase**

Mortgage rates track closely with the 10-year Treasury yield, which has been climbing on persistent inflation concerns and elevated Treasury yields. Unlike the Federal Reserve's short-term interest rate, which influences credit cards and auto loans more directly, long-term mortgage rates respond to investor expectations about inflation and the broader economy.

**Local impact**

For prospective buyers in Custer and Fremont counties, higher rates mean higher monthly payments on the same loan amount. On a $300,000, 30-year mortgage, the difference between a 6% rate and a 7% rate amounts to roughly $200 more per month — a gap that can price out buyers already navigating a tight local housing market.

**What it would take to see relief**

A meaningful drop back toward 5% or lower would likely require either a weakening economy that prompts the Federal Reserve to cut rates more aggressively, cooling inflation that eases pressure on Treasury yields, or reduced federal borrowing that takes some upward pressure off long-term rates. Most mainstream forecasts — including those from Fannie Mae and the National Association of Realtors — project rates stabilizing in the 6% range rather than returning to pandemic-era lows near 3%, which most economists consider a historical anomaly driven by emergency-era Federal Reserve policy.

*Source: Freddie Mac Primary Mortgage Market Survey, data as of September 17, 2026.*  
**Note to Readers:** *This article was initially drafted using AI technology and has been thoroughly reviewed, fact-checked, and edited by our journalist to ensure accuracy, fairness, and adherence to our editorial standards.*