A method of providing feedback on channel observations to a transmitter includes observing a channel at a receiver based on received signals from the transmitter and determining whether a packet error rate (PER) is rising based on the observing. The receiver determines whether a rising PER is caused by channel noise or interference, and transmits a message to the transmitter indicating the cause of the rising PER. The cause may be encoded in reserved bits of a block acknowledgement (BA) frame or an Acknowledge (ACK) frame, or in a modulation coding scheme (MCS) used to transmit the message. The cause may be detected in response to SNR/RSSI level of received signals, or a number of receiver restarts. The transmitter may change the transmit rate adaptation algorithm to use a lower MCS if channel noise causes the rising PER, and a higher MCS if interference causes the rising PER.