Market Update · September 3, 2026 · 7 min read
The Freddie Mac Primary Mortgage Market Survey released this morning shows the average 30-year fixed mortgage rate at 6.71% for the week ending September 3, 2026. That's up five basis points from last week and the highest mark we've seen all year.
For context: we were hovering in the low 6.6% range just a few days ago. Now we're inching uncomfortably close to 7%.
If you've been following along, you know this climb didn't happen in a vacuum. Earlier this week, I talked about how global oil shocks and geopolitical tension were pushing Treasury yields higher. Mortgage rates follow. That's still the story today, though we got a tiny bit of relief late Thursday.
Buried in the weeds of today's bond market action was a series of comments from Federal Reserve Governor Chris Waller. According to Mortgage News Daily, Waller essentially said the Fed isn't interested in hiking rates at the next meeting unless inflation data suddenly spikes. That's not a promise of rate cuts, but it did take a worst-case scenario off the table for now.
Rates actually improved slightly on Thursday because of that. But "improved" is relative. We're still at the year's high. And if you're a buyer in Harford County or Baltimore County trying to pencil out a monthly payment, the difference between 6.66% and 6.71% feels academic when both are painfully high.
I was at an open house in Bel Air last weekend. Nice split-foyer, three beds, updated kitchen, listed at $375,000. A couple in their early thirties walked through, loved the layout, asked all the right questions. Then they pulled up a mortgage calculator on their phone.
At 6.5%, their monthly payment (principal and interest, not counting taxes or insurance) would've been around $2,372. At 6.71%, it jumps to roughly $2,430. That's an extra $58 a month, or nearly $700 a year, for the exact same house. Multiply that across a 30-year loan and you're talking about paying an additional $21,000 in interest.
They didn't make an offer.
That's the story playing out across Maryland right now. Buyers aren't walking away because they hate the homes. They're walking away because the math stopped working somewhere between last month and this one.
Here's the twist: we actually have more homes to choose from. Redfin reported that fresh listings hit their highest level since August 2022. New listings rose 2.1% week-over-week in late August, and that momentum carried into early September.
In my coverage area—Cecil, Harford, Baltimore County, Anne Arundel, Howard, Montgomery—I'm seeing it firsthand. Sellers who were sitting on the fence last spring are finally listing. Some because they have to (job transfer, divorce, estate settlement). Others because they're tired of waiting for a "perfect" market that isn't coming.
But here's the problem: buyer demand is basically flat. Higher rates are keeping would-be buyers on the sidelines. Zillow noted that newly pending sales fell sharply in July even as closed sales ticked up 7%, a sign that the July bump was a mirage driven by contracts signed weeks earlier when rates were lower.
We're not seeing panic. We're seeing paralysis.
National headlines love to talk about Florida's luxury market, and for good reason. Redfin found that Miami and Tampa are posting double-digit price increases in the high-end segment, fueled by affluent buyers fleeing higher-tax states and younger tech money from AI windfalls. (There's even chatter about how a potential SpaceX IPO could pump even more cash into luxury real estate, though that's mostly a West Coast and Florida conversation.)
That's not our market. In Maryland, Pennsylvania, Delaware, and D.C., we're dealing with something much more grounded: middle-class buyers trying to figure out if they can still afford to move up, first-timers wondering if homeownership is even realistic, and sellers who need to price accurately or risk sitting for months.
The good news? We're not Seattle. Redfin's comparison of tech cities showed Seattle's market slumping while San Francisco booms, a reminder that local economic conditions matter more than ever. The Baltimore-Washington corridor has federal employment, healthcare, and education anchoring things. We don't have the AI euphoria of San Francisco, but we also don't have the jitters of a one-industry town.
If you're serious about buying in the next 90 days, here's my teaching-mode advice:
Get pre-approved with current rate assumptions. Not the rate you wish you had. The rate that exists today. If 6.71% works for your budget, great. If it doesn't, you need to know that before you fall in love with a house.
Focus on homes that have been listed 30+ days. Sellers who've been sitting are more willing to negotiate. In Harford and Cecil Counties especially, I'm seeing price reductions and seller-paid closing cost credits that weren't on the table in May.
Remember that rates aren't permanent. Yes, 6.71% stings. But you can refinance later if rates drop. You can't re-negotiate the purchase price once you close. If you find the right house at a fair price, the rate is just one variable.
I walked through this exact conversation with a client yesterday. They're looking in Anne Arundel County, budget around $450,000, and they were ready to pause their search because of rates. I showed them the numbers: even if they refinance in two years at, say, 5.5%, they'll save roughly $350/month going forward. That's real money. But if they wait and prices climb another 3-5% while rates don't drop as much as they hope, they've lost both ways.
If you're thinking about listing this fall, understand that buyers are doing the math more carefully than they were six months ago. That doesn't mean your home won't sell. It means your listing photos better not look like a crime scene, your price needs to reflect current comps (not what your neighbor's house sold for in March), and you need to be ready to offer some flexibility.
I've had three listings go under contract in the last two weeks—two in Harford County, one in Baltimore County—and every single one involved either a price adjustment or a closing cost credit. Buyers have choices right now. If your home isn't priced right or doesn't show well, they'll just move on to the next one.
It's worth zooming out for a second. The Federal Reserve's latest Beige Book showed economic activity edging higher, but sentiment was mixed across sectors. Consumer spending is uneven. Some people are still flush with cash; others are tapped out.
Housing sits right in the middle of that tension. We have pent-up demand from people who want to move but can't stomach the rate environment. We have sellers who need to move but are frustrated that buyers aren't offering asking price anymore. And we have a Fed that's trying to thread the needle between fighting inflation and not choking off growth.
None of this resolves overnight.
The next Fed meeting is September 16th. Based on Waller's comments, a rate hike seems unlikely, but the market will be watching the language closely. If inflation data between now and then shows any upward surprise, all bets are off.
Closer to home, I'm watching whether new construction delays continue to ease or if builders pull back further given the rate environment. Slower construction could keep inventory tight even as existing-home listings rise, which would put a floor under prices.
I'm also keeping an eye on rental trends. Zillow reported that rents hit $1,962 nationally in July, rising at the fastest pace in over a year. If renting gets more expensive and buying stays tough, we're going to see more people stuck in place, which just prolongs the broader housing shortage.
Rates are high. Inventory is better. Demand is cautious. If you're a buyer who's been waiting for the "right time," I can't tell you this is it—but I also can't tell you it's going to get dramatically easier in the next six months. If you're a seller, price it right and prepare to negotiate.
And if you're just trying to make sense of all this, that's literally what I'm here for. I spent two decades in education before I ever sold a house, and old habits die hard. I'd rather walk you through the numbers at your kitchen table than push you into a decision that doesn't make sense.
If you want to talk through your specific situation—whether that's in Harford, Cecil, Baltimore, Montgomery, Howard, Anne Arundel, Charles, Prince George's, York, Lancaster, New Castle, or D.C.—let's talk. And if you just want to see what's actually available right now, start here.
We'll figure it out together.
Katrina Kirton Sherrod, REALTOR® · Samson Properties · Licensed in MD, DC, PA & DE · 443-616-9770 · Katrina@kkstherealtor.com
“Buy land — they are not making it anymore.” — Mark Twain