Mortgage Rate Update: Fed Raises Rates
The Federal Reserve raised its benchmark interest rate by 0.25% today, bringing the federal funds target range to 3.75%–4.00%, as policymakers continue to focus on elevated inflation.
What does that mean for mortgage rates?
A Fed rate hike does not automatically mean mortgage rates will rise. Mortgage rates are influenced more directly by longer-term bond markets and expectations for inflation and the economy.
In fact, despite today’s Fed hike, average mortgage rates moved slightly lower today.
Today’s Average Mortgage Rates
According to Mortgage News Daily, as of September 16:
• 30-Year Fixed: 7.19%
• 15-Year Fixed: 6.81%
• 30-Year FHA: 6.78%
• 30-Year VA: 6.80%
• 30-Year Jumbo: 7.38%
• 7/6 SOFR ARM: 6.66%
Takeaway: mortgage rates may remain volatile in the near term as markets digest the Fed’s decision, inflation data, and broader economic conditions.
For buyers, it’s worth staying in close contact with your lender—rates can move quickly, and the rate available to an individual borrower can vary significantly based on credit, down payment, loan type and other factors.
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