Weekly mortgage rate update

If you have been following along each week, you saw rates climb through July, ease for a couple of weeks in mid-August, then hold their ground last week. This week the story turned again: rates moved back up. The latest Freddie Mac Primary Mortgage Market Survey® (PMMS), released Thursday, September 3, showed the 30-year fixed at 6.71%, the 15-year fixed at 6.04%, and the 5/1 adjustable-rate mortgage at 7.03%. Here is the data and what it means if you are buying, selling, or refinancing in the Tri-Cities.

This week’s rates

Data sourced from the most recent Freddie Mac PMMS release, for the week ending September 3, 2026 (the latest available as of this update):

Source: Freddie Mac Primary Mortgage Market Survey®, week ending September 3, 2026. Rates assume a credit score of 740, 20% down payment, and 0.7 discount points. Actual rates vary by borrower profile. Freddie Mac’s main PMMS page publishes the 30- and 15-year fixed rates; this week’s 5/1 hybrid ARM figure comes from reporting on that week’s survey.

What happened this week

This week Freddie Mac’s release carried a simple title: “Mortgage Rates Average 6.71%.” After a flat week, the 30-year fixed moved up five basis points to 6.71%, the highest reading in this series since weekly tracking began in late June, and the 15-year fixed moved up six basis points to 6.04%. The eye-catching number, though, was the 5/1 ARM, which jumped 39 basis points to 7.03%.

That ARM move deserves a closer look, because it is unusual. For most of recent years, adjustable rates have been priced lower than fixed rates during their initial period; that is the trade-off that made them attractive. This week the 5/1 ARM is about 32 basis points higher than the 30-year fixed, a signal that lenders are pricing in considerable uncertainty about where short-term rates head next. For most buyers I talk to, that makes the predictability of a fixed rate the easier decision right now.

Compared to a year ago, today’s 30-year rate of 6.71% is about 15 basis points higher than the 6.56% of August 2025. The climb we tracked through July has resumed in a modest way, and it now sits right in the zone the forecasters told us to expect.

What does 6.71% actually mean for your payment?

Let me put real numbers to this. If you are purchasing a $400,000 home in the Tri-Cities with 20% down ($80,000), your loan amount would be $320,000. Here is what that looks like at today’s rates:

Compared to last week, the change on the 30-year is modest, roughly $10 more per month on that $320,000 loan. The honest perspective comes from a longer view: compared to the summer low of 6.43% the first week of July, today’s 6.71% costs about $60 more per month, a reminder of what a few basis points add up to. And at 6.71%, we have now exceeded the early-August peak of 6.69%, confirming what Fannie Mae’s forecast suggested: higher for longer is the current path, not a dip.

The 15-year fixed at 6.04% costs more each month (about $640 more than the 30-year) but saves roughly $257,000 in total interest over the life of the loan. And a quick note on the 5/1 ARM at 7.03%: its opening payment on the same loan would run about $2,135 per month, slightly higher than the 30-year fixed, with the added risk of adjustment after the first five years. In today’s unusual spread, the fixed 30-year still gives most buyers the best combination of payment, predictability, and equity growth.

The outlook from Fannie Mae

Fannie Mae’s Economic and Strategic Research (ESR) Group published its August 2026 Economic and Housing Forecast on August 19, and the update is proving prescient. On inflation risks tied to global supply chain disruptions, elevated energy prices, and geopolitical tensions, ESR projected the average 30-year fixed rate at roughly 6.7% in the third quarter of 2026 and 6.8% in the fourth, holding near 6.8% through the first half of 2027 before drifting to about 6.7% in the second half of the year.

That is a sharp departure from the July outlook, which had called for averages easing into the 6.3% to 6.4% range through 2026 and down toward 6.2% by late 2027. The revision reflects a cautious reassessment: volatile bond markets, monetary policy uncertainty, and the same supply-side pressures Freddie Mac has also flagged. The useful bottom line for buyers is that this week’s actual 30-year rate of 6.71% is essentially right on Fannie Mae’s third-quarter projection. The market is now behaving the way the forecasters said it would.

Both of the national agencies continue to flag the “lock-in effect”: homeowners with pandemic-era sub-4% mortgages who are reluctant to sell, which keeps the resale inventory thin beneath strong demand. In the Tri-Cities, steady in-migration from higher-cost West Coast markets continues to meet that constrained supply, which supports home values even as rates stay elevated.

What this means for Tri-Cities buyers

An up week is never the headline anyone hopes for, and I want to be straight with you about it. Rates moved up, and they are higher than they were at the start of summer. But notice what has not happened: we have not seen a dramatic, structural breakout. The 30-year is trading a few basis points on either side of 6.7%, right where the August forecast mapped it. The meaningful variable for your monthly budget is small, and dwelling on another basis point is usually a distraction.

Here is what I want you to hear: time in the market beats timing the market. Rate movement this week amounts to roughly $10 per month on a typical Tri-Cities purchase. Holding off for months to chase a drop that forecasters do not expect before mid-2027 often costs more in rising purchase prices and in rent paid meanwhile. What actually moves the needle is what you control: your down payment plan, your credit profile, and being ready to act when the right home appears. In the Tri-Cities, a $400,000 home in Kennewick, Richland, Pasco, or West Richland at 6.71% is still a payment that builds equity month after month in one of the most resilient and affordable housing markets in Washington.

What this means for sellers

When rates tick up, buyers shop with slightly less buying power, which is why precise pricing and sharp presentation matter more than they did in mid-summer. The good news is that the increase is small, and the demand picture in the Tri-Cities has not changed: relocating families from Seattle, Portland, and California keep the pool of qualified, motivated buyers strong.

For sellers, the lesson is steady and unchanged. Homes priced against current market data, staged thoughtfully, marketed professionally, and presented honestly are still drawing serious offers. If you have been watching the weekly numbers from the sidelines, let me tell you what they do not capture: the strength of actual activity on the ground. Demand remains consistent, and a well-positioned home wins. That is where my team and I can help.

The bottom line

Mortgage rates moved up this week. The 30-year fixed sits at 6.71% (up five basis points), the 15-year at 6.04% (up six points), and the 5/1 ARM at 7.03% after a 39-basis-point jump that pushed it above the 30-year. Fannie Mae’s August forecast anticipated this terrain: it expects the 30-year near 6.7% to 6.8% into early 2027, with easing only later in the year.

The word of the week is steady preparation. Rates are higher than the summer low, but they are behaving exactly like the forecast said they would, and the cost of waiting is usually higher than the cost of acting. Homeownership is about building a future for your family, not timing a market bottom. If you are ready to buy, sell, or simply explore your options, I would love to sit down with you, run the numbers at today’s rates, and map out what is possible for your specific situation.

Sources: Freddie Mac Primary Mortgage Market Survey®, week ending September 3, 2026 (“Mortgage Rates Average 6.71%”, released September 3, 2026). Fannie Mae Economic and Strategic Research Group, August 2026 Economic and Housing Forecast (released August 19, 2026). 5/1 hybrid ARM figure per reporting on the September 3, 2026 survey. Monthly payment estimates calculated with standard amortization formulas, and actual payments vary by loan terms, credit score, taxes, insurance, and other factors. This is not financial advice. Consult a licensed lender for personalized rate quotes.