Mortgage rates just hit 7.28%. But there are ways to get a lower rate

By Samantha Delouya, CNN

(CNN) — Mortgage rates keep going up.

The average 30-year fixed mortgage rate was 7.28% this week, up from 7.03% last week, according to Freddie Mac data released Thursday. Mortgage rates have risen for six straight weeks, and this week brought the biggest one-week jump in nearly four years. Rates are now at their highest level since November 2023.

Turmoil in the bond market is driving rates higher. The 10-year Treasury yield has risen in recent months as investors worry that the Iran war and increased government spending could further stoke inflation and push the Federal Reserve toward higher rates for longer.

If you’re currently in the market for a home, the good news is you may be facing less competition from rate-sensitive buyers who are stepping back. But if you need a mortgage, the bad news is you will likely pay more in monthly costs than you would have just a few months ago.

But even with borrowing costs high – and potentially headed higher – a sub-7% mortgage rate may still be within reach for some buyers. The trade-off could be a riskier loan or a much bigger upfront payment.

Here’s what to know:

Get creative with your mortgage

Most home buyers opt for a 30-year fixed-rate mortgage because it typically offers lower monthly payments and predictable costs.

But it’s not the only option. Other types of mortgages may offer lower interest rates, potentially saving borrowers money over the life of the loan.

A 15-year mortgage typically has a lower interest rate than a 30-year mortgage, though monthly payments are significantly higher. Another option that is becoming increasingly popular lately: adjustable-rate mortgages (ARMs).

As of the latest data last week, “ARM loans, with rates around 80 basis points lower than fixed rate loans, accounted for 10.3% of applications, the highest share since October 2025,” according to Joel Kan, deputy chief economist at the Mortgage Bankers Association.

But ARM loans, the mortgage products that helped fuel housing market risk in the lead-up to the 2008 financial crisis, are riskier than fixed-rate loans. They typically offer a lower fixed rate for five, seven or 10 years before resetting with market rates. If rates are higher when the fixed period ends, borrowers can be hit with sharply higher monthly payments.

“It may work well for some borrowers who are expecting to move or refinance in four or five years,” said Jeremy Luke, a divisional director at Chase Home Lending. “It may not work for all.”

Another way to get a lower mortgage rate is to take over someone’s existing mortgage as an assumable loan.

Not all home loans can be passed to a home buyer, but most government-backed loans, such as those from the Federal Housing Administration, the US Department of Veterans Affairs and the US Department of Agriculture, are assumable.

However, the approval process for an assumable mortgage can take longer. And because the buyer takes over only the seller’s remaining loan balance, they may need to bring significantly more cash to the table to cover the difference between that balance and the home’s purchase price.

Buy down your rate

The rate an individual buyer gets depends on more than market conditions. Lenders also consider factors such as the borrower’s credit score, debt-to-income ratio and down payment, said Jeff DerGurahian, head economist at loanDepot.

After shopping around, if you are unsatisfied with the rates you’ve been offered, it’s often possible to pay more up front in exchange for a reduced interest rate.

Permanent buydowns lower your interest rate for the life of the loan, whereas temporary buydowns, which can be cheaper, lower your rate for only the first few years.

But it’s important not to overdo it, DerGurahian said.

“You don’t want to put so much money down that you can’t do what you need to do to live in your house and live day-to-day,” he said.

Get someone else to cover a buydown

Sometimes, the home’s seller or a builder can cover the cost of a rate buydown.

Builders are leaning more heavily on incentives to attract buyers to new construction, offering concessions such as mortgage rate buydowns and closing-cost credits. In September, 66% of builders reported using sales incentives, up from 63% in August and the highest share since December, according to the National Association of Home Builders’ sentiment survey.

A buyer should also understand the demand picture in their local market, said DerGurahian.

If it’s a buyer’s market, that means the supply of homes in that area exceeds demand, giving home buyers the upper hand. If a homeowner is motivated to sell, they may be willing to offer concessions to attract a buyer. If sellers have the upper hand in a local market, though, it’s less likely.

Take advantage of programs designed to help

Certain buyers may have access to federal programs that can help them secure more favorable mortgage rates, including VA loans for eligible veterans and USDA loans for buyers purchasing homes in qualifying rural areas.

There are also banks and credit unions that offer relationship pricing or preferential rates.

For example, Chase occasionally runs “rate sales” where home buyers (and homeowners looking to refinance) can lock in discounted rates, Luke said.

Some banks, including Chase, also offer a discounted rate if customers move eligible deposits and investments into that bank, Luke added.

Don’t forget to shop around

It pays to shop around. Experts generally recommend applying with at least three different mortgage lenders to make sure you’re getting a competitive rate. Compare the rates offered, closing costs and other fees to get a clearer picture of the total cost of each loan.

And you don’t necessarily have to worry about multiple credit checks dinging your score. To shop around for mortgages without hurting your credit, limit your search to a window of 14 to 45 days, according to Bankrate.

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