The Federal Reserve just raised interest rates for the first time since 2023. Here's how mortgage rates may respond.
Also reported by ABC News
Summary
The Federal Reserve raised its interest rates by 0.25% for the first time since 2023, aiming to control inflation. This rate change may increase mortgage rates, which are already high, affecting homebuyers and the housing market.Key Facts
- The Fed raised its benchmark interest rate to a range of 3.75% to 4.00%.
- The increase was 25 basis points (0.25%), the first hike since 2023.
- Average 30-year fixed mortgage rates are around 7.43% as of mid-September 2026.
- Mortgage rates generally follow the 10-year Treasury yield more closely than the Fed rate.
- This rate hike signals the Fed's concern about persistent inflation.
- Mortgage rates may rise or stabilize depending on future Fed actions and inflation reports.
- High mortgage rates are making it harder for buyers to afford homes.
- Homeowners who locked in lower rates may be less likely to move now.
