The average 30-year fixed mortgage rate climbed to 7.40% this week, up from 6.30% a year ago, according to Freddie Mac. For a buyer purchasing a home at Maryland’s statewide median price, that difference adds roughly $260 to the monthly principal-and-interest payment, at a time when the state already has fewer homes for sale than last year.
Freddie Mac’s weekly survey, released Thursday, Oct. 8, showed the 30-year average up from 7.28% the previous week. The 15-year fixed average rose to 6.73% from 6.60%, according to the company’s release.
How high are mortgage rates right now?
The latest figures from Freddie Mac’s Primary Mortgage Market Survey, which tracks conventional purchase loans for borrowers with 20% down and excellent credit:
| Loan type | Oct. 8, 2026 | Oct. 1, 2026 | A year earlier |
|---|---|---|---|
| 30-year fixed | 7.40% | 7.28% | 6.30% |
| 15-year fixed | 6.73% | 6.60% | 5.53% |
Fox Business reported it was the seventh straight weekly increase in the 30-year average. Real estate news site WRE News noted the 30-year rate had risen 64 basis points since Sept. 10, when it stood at 6.76%, and that this week’s reading was the highest since November 2023.
Keep in mind that the survey is an average. The rate an individual Maryland borrower is quoted depends on credit score, down payment, loan type and points, and can be higher or lower.
Why are rates going up?
Mortgage rates follow long-term bond yields more closely than the Federal Reserve’s short-term policy rate. The 10-year Treasury yield averaged 5.28% this week, 9 basis points above the prior week, Fox Business reported. Realtor.com economist Joel Berner pointed to inflation expectations, a broad bond market selloff and rising federal deficits as forces pushing yields higher, according to the same report.
What does 7.40% mean for a Maryland home buyer?
Maryland REALTORS reported a statewide median sales price of $445,000 in August 2026, up 2.3% from a year earlier, according to The Washington Informer’s report on the association’s data. The table below estimates monthly principal and interest on a 30-year loan with 20% down, using the August median prices for the state and several counties. Taxes, homeowners insurance and any HOA fees are not included.
| Area (Aug. 2026 median) | Loan amount | Payment at 6.30% | Payment at 7.40% | Difference |
|---|---|---|---|---|
| Maryland statewide ($445,000) | $356,000 | $2,204 | $2,465 | +$261 |
| Anne Arundel County ($507,000) | $405,600 | $2,511 | $2,808 | +$298 |
| Charles County ($435,000) | $348,000 | $2,154 | $2,409 | +$255 |
| Howard and Montgomery counties ($640,000) | $512,000 | $3,169 | $3,545 | +$376 |
Over the full 30 years, the statewide-median example works out to about $531,000 in total interest at 7.40%, compared with about $437,000 at 6.30%, a difference of roughly $94,000 if the loan is never refinanced or paid off early.
Is Maryland’s housing market slowing down?
Sales are down, but prices have not fallen statewide. In August, Maryland recorded 5,582 closed sales, 8.5% fewer than a year earlier. New listings dropped 23.6%, and active inventory fell 13.7% to 16,897 homes, according to the Maryland REALTORS figures. Homes sold in a median of 17 days.
“Buyers need homes to choose from, and Maryland simply isn’t seeing enough properties come onto the market.”
Denise Lewis, 2026 president of Maryland REALTORS, as quoted by The Washington Informer
That combination, higher borrowing costs and a short supply of homes, means rising rates have so far squeezed buyers’ budgets more than they have pushed prices down in Maryland. Price trends vary by county: the August median rose 3.8% in Montgomery County and 1.3% in Anne Arundel, but slipped in Prince George’s, Howard and Charles counties.
What can Baltimore-area buyers and homeowners do now?
- Compare several lenders. Freddie Mac’s chief economist, Sam Khater, urged borrowers in the Oct. 8 release to shop around for a rate. Quotes for the same borrower can differ from lender to lender.
- Look at state programs. The Maryland Mortgage Program, run by the Maryland Department of Housing and Community Development, offers home loans and down payment assistance to eligible buyers through approved lenders. Income and purchase-price limits apply; details are on the state’s official website, mmp.maryland.gov.
- Ask about a rate lock. If you are under contract, ask your lender how long a quoted rate can be locked and what an extension costs.
- Homeowners with older loans: Most people who bought or refinanced before 2022 have rates well below today’s averages, so refinancing generally does not pay off right now. Our guide on when refinancing makes sense walks through the math, and our explainer on adjustable vs. fixed-rate mortgages covers the trade-offs of an ARM.
When is the next mortgage rate update?
Freddie Mac publishes its survey weekly, typically on Thursdays. Maryland REALTORS usually releases its monthly housing report around the middle of the following month, so September figures for the state and Baltimore-area counties are expected soon.
Featured image: Rowhouses on North Broadway in Baltimore. Photo: Baltimore Heritage / Wikimedia Commons, CC0.