Mortgage rates in the United States have remained above 7% following the Federal Reserve’s latest decision to increase its target interest-rate range, further impacting borrowing costs for potential homebuyers. As of September 17, 2026, the average rate for a 30-year mortgage stood at 7.37%, a significant rise from the 5.75% seen in March. The Fed recently raised its interest-rate range to 3.75%–4% in an effort to combat inflation, which continues to exceed the central bank’s 2% target.
Although the Federal Reserve’s policy changes do not directly dictate mortgage rates, they are part of a broader set of influences including financial markets, inflation expectations, and investor demand. Consequently, the Fed’s recent rate hike does not automatically result in a corresponding rise in mortgage rates. However, the increase in borrowing costs has added pressure on homebuyers who were already contending with rising property prices.
Prospective borrowers might still find opportunities to secure lower-than-average rates depending on various factors such as their credit score, the size of their down payment, and the terms offered by different lenders. Additionally, some opt to pay mortgage points upfront to reduce their interest rates, although this strategy increases upfront closing costs. Adjustable-rate mortgages (ARMs) are another alternative, though they carry the risk of rate adjustments after the initial period.
Refinancing options have also been affected by the higher rates. The average rate for a 30-year refinance was 7.41%, while the 15-year refinance rate was 6.75% as of the same date. Homeowners with existing mortgages at substantially lower rates may find refinancing less enticing unless the potential savings justify the costs involved.
Looking ahead, mortgage rates will continue to be influenced by a range of factors including inflation, economic conditions, and expectations regarding future Federal Reserve policy decisions. While there is hope that rates might decrease, there remains no assurance that waiting will lead to lower borrowing costs for homebuyers.