The Federal Reserve just froze interest rates yet again. Here's what that could mean for mortgage rates.
Summary
The Federal Reserve has kept its main interest rate steady for the fifth time in 2026, but a rate increase may happen in September due to ongoing inflation and global issues. This situation affects mortgage rates, which could rise again, impacting homebuyers and people looking to refinance their homes.Key Facts
- The Federal Reserve paused interest rate changes for the fifth time in 2026.
- Inflation remains above the Fed’s 2% target, raising chances of a rate increase soon.
- A possible rate hike could happen at the Fed’s September meeting, the first since July 2023.
- Mortgage rates had dropped in 2025 and early 2026 but have risen again recently.
- Mortgage rates might return to around 7% or higher if the trend continues.
- Locking in a mortgage rate now can protect borrowers from future rate increases.
- Considering adjustable-rate mortgages, paying points for lower rates, or shorter loan terms may help save money.
- Shopping around for the best mortgage rate is especially important before a possible rate hike.
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