Higher energy costs fan the flames of inflation, which puts upward pressure on mortgage rates. Here’s how to put today’s mortgage rates in perspective based on where you are in your homebuying journey. The Fed doesn’t set mortgage rates , but mortgage rates often move in anticipation of the Fed's next step. "In this kind of environment, we're unlikely to see mortgage rates drop," says Kate Wood, lending expert at NerdWallet. After all, 30-year fixed-rate mortgage rates routinely climbed above 7% throughout early 2025.