09/25/2026
🚨 BUYERS… IF YOU WERE PRE-APPROVED A FEW WEEKS AGO, YOU NEED TO READ THIS.
Mortgage rates have moved FAST.
On September 8, Mortgage News Daily had the average top-tier 30-year fixed rate around 6.89%.
Yesterday, September 24?
👉 7.45%.
Freddie Mac’s weekly national average is currently 7.03%, so depending on the lender, credit, points and loan program, your actual rate can vary.
But here is the part people don't always understand:
When interest rates go up, you don't just get a higher payment. You can actually lose BUYING POWER.
Let's put real numbers to it.
Assume a 30-year mortgage with 10% down, and compare 6.89% to 7.45%. These figures are principal and interest only:
🏠 $300,000 home
Payment increase: about $102/month
🏠 $350,000 home
Payment increase: about $119/month
🏠 $400,000 home
Payment increase: about $136/month
🏠 $450,000 home
Payment increase: about $153/month
And here's the bigger problem.
If your lender had already approved you based on a certain maximum monthly payment, that increase can LOWER the price of the house you qualify for.
A buyer who could support approximately a $400,000 purchase at 6.89% may only have roughly $378,000 of the same buying power at 7.45%.
That's almost $22,000 in purchasing power gone in a little over two weeks.
😳 Same job.
Same income.
Same down payment.
Same credit.
Less house.
You've probably also seen the statistic that 1.3 MILLION households can be priced out by a relatively small increase in rates.
That number is real, but here's the important context: it comes from a National Association of Home Builders affordability analysis that estimated roughly 1.3 million households were priced out when rates increased just ¼ of a percentage point from 6.25% to 6.50% in its 2023 model.
So I wouldn't say exactly 1.3 million buyers were suddenly knocked out THIS WEEK.
But the point absolutely stands:
Small changes in mortgage rates can remove huge numbers of people from the qualified buyer pool.
This matters to SELLERS, too.
Fewer qualified buyers means fewer people who can afford your home, especially in the first-time and move-up price ranges.
And buyers, if you were pre-approved even two or three weeks ago, do not assume your buying power is still the same.
Have your lender rerun the numbers before you fall in love with a house.
This market is changing quickly, and right now interest rate matters almost as much as purchase price.
📲 If you're thinking about buying in SE Wisconsin or NE Illinois, I'll help you run the numbers with a trusted local lender BEFORE we start looking so you know exactly where you stand.
Char Nikolai, REALTOR®
Cove Realty
📱 262-909-8106
🌐 charnikolai.com
