What's Up With Interest Rates? And Why It's Still OK to Buy or Sell Now

What's Up With Interest Rates? And Why It's Still OK to Buy or Sell Now

By Tonya Moles, Executive Broker, Real Broker River Valley | Updated October 12, 2026

If you've looked at mortgage rates lately, you've probably felt it. Rates have been climbing, and a lot of neighbors are asking me the same thing: is it still a good time to buy or sell? Here's the straight answer, in plain English.

What's going on with rates

• The average 30-year fixed mortgage rate was 7.40% the week of October 8, according to Freddie Mac. A year ago it was 6.30%.
• That is the highest weekly average since November 2023, and rates have gone up seven weeks in a row (Realtor.com).
• Why? Inflation is still running above the Federal Reserve's 2% goal. On September 16 the Fed raised its target rate by a quarter point, to 3.75%-4.00%, and signaled it may not be done (Federal Reserve; Reuters).
• Mortgage rates follow the 10-year Treasury yield more than the Fed's rate, and that yield has been rising too.

Nobody can tell you where rates go from here, me included. Anyone who promises a date is guessing.

What it means for a monthly payment

Here is simple math on a $200,000 loan, principal and interest only (my own arithmetic, for illustration; it leaves out taxes, insurance and mortgage insurance):

• At 6.30%: about $1,238 a month
• At 7.40%: about $1,385 a month
• The difference: about $147 a month

That's real money, and I'm not going to wave it away. But it's a number you can plan around, and it is not the whole story.

Why it can still be a good time to buy

• More choices. Nationally there is a 4.9-month supply of homes for sale, the highest in over ten years, and NAR's chief economist says that gives buyers better room to negotiate (NAR, August 2026).
• Prices are steady, not spiking. The national median existing-home price was $429,100 in August, up 1.6% from a year ago (NAR).
• Our area is more affordable. Over the last six months, Resideline tracked 195 closed sales in Russellville with a median price of $206,000. Statewide the median was $274,000. Your payment depends on the home, not the national headline.
• You aren't married to the rate. If rates come down later, you may be able to refinance. That depends on your loan, your credit and the market at that time, so it is never a promise.
• Waiting has its own cost. If rates drop, more buyers usually jump back in, and that can mean more competition and higher prices.

Why it can still be a good time to sell

• Buyers are still buying. Existing-home sales are up 1.6% for the first eight months of 2026 compared to last year (NAR).
• Prices have held up nationally. August marked 38 straight months of year-over-year price increases (NAR).
• The sellers who win right now are the ones who price it right, show it well and are ready to talk about terms. Buyers are comparing more homes, so a fair price from day one matters.
• If you're selling and buying, you're dealing with today's rates on both sides. That often evens things out more than people expect.

A few smart moves for buyers

• Get quotes from more than one lender. Freddie Mac itself says shopping around can save thousands over the life of a loan.
• Build in a cushion. Realtor.com suggests a modest buffer in your budget in case rates move before you close.
• Ask about options like rate buydowns, seller help with closing costs, and special loan programs. Which ones fit depends on you.
• Work on your credit score and your down payment. Both can lower your rate.

The bottom line

Higher rates make buying more expensive, and that is a real change from a year ago. But there is more inventory, prices are steady, and local homes are within reach for many families. For sellers, there are still motivated buyers. The right move depends on your plans, your budget and your timeline, not on the headline.

Thinking about buying or selling in Dardanelle, Russellville or anywhere in the Arkansas River Valley? Call or text me and we'll run the numbers for your situation. No pressure.

Tonya Moles | Executive Broker

Real Broker River Valley | 479-857-3633

215 S Arkansas Ave, Ste 6, Russellville, AR 72801

Sources

• Freddie Mac, Primary Mortgage Market Survey, as of Oct 8, 2026: https://www.freddiemac.com/pmms
• com, Mortgage Rates Hit New 3-Year High, Oct 8, 2026: https://www.realtor.com/news/trends/mortgage-rates-fed-hikes-today-october-8-2026/
• Federal Reserve FOMC statement, Sept 16, 2026: https://www.federalreserve.gov/newsevents/pressreleases/monetary20260916a.htm
• Reuters, Fed hikes rates, Sept 16, 2026: https://www.reuters.com/business/warshs-words-may-matter-more-than-anticipated-fed-rate-hike-2026-09-16/
• NAR Existing-Home Sales, August 2026: https://www.nar.realtor/newsroom/nar-existing-home-sales-report-shows-2-0-decrease-in-august
• Resideline Market Watch, Russellville, AR (data as of Oct 2026): https://resideline.com/blog/russellville-ar-housing-market
• Resideline Market Watch, Arkansas (Oct 2026): https://resideline.com/blog/arkansas-housing-market

This post is general information, not financial, legal or tax advice, and is not a rate quote or a guarantee of any outcome. Rates and market data change often. Talk with a licensed lender about your own situation.