After swinging from a dramatic spring peak to a welcome summer low, mortgage rates are now holding steady—letting buyers potentially save hundreds each year.

Mortgage rates today sit at 6.625% for a 30-year fixed loan. High rates are straining affordability and slowing housing activity.

It's something that has a big impact on homebuyers: mortgage rates. When mortgage rates go up, it becomes more expensive to borrow. In some cases, they can price buyers out of the market and cause monthly payments to go up for those who can still afford to purchase a home.

So far this year, average mortgage rates have stayed stubbornly high, bouncing between 6.5% and 7%, as financial markets weigh the risks of both higher inflation and an economic slowdown. Most homeowners, unable to save money by refinancing, are holding out for bigger rate drops.

Missing a mortgage payment can have detrimental consequences such as foreclosure. In addition, this can also affect your credit score.

The Federal Reserve has stayed the course, stalling rate cuts as they wait to see the impact of President Donald Trump’s Tariffs. Vivian Gueler, CFO of Pacific Trust Group, spoke about mortgage rate expectations for the coming year.

The 6-month Treasury yield is still glued to the underside of the Effective Federal Funds Rate, which the Fed targets with its policy interest rates.

A massive financial divide is splitting many Americans, and it comes down to when you locked in your mortgage rate. People who bought homes or refinanced before 2021 often have far better monthly payments, while today's buyers face borrowing costs that can be $1,000 or more per month higher for the same homes.