U.S. mortgage rates have remained above the 7% mark following the Federal Reserve’s recent decision to raise its benchmark interest rate, adding to the financial burden for prospective homebuyers. As of September 17, 2026, the average rate for a 30-year fixed mortgage stood at 7.37%, while the 15-year fixed mortgage rate averaged 6.62%.
This development comes after the Federal Reserve increased its target interest-rate range to between 3.75% and 4% as it continues to battle inflation that persists above its target of 2%. Although mortgage rates do not move in direct correlation with the Fed’s policy rate, they are influenced by financial markets, inflation expectations, and investor demand.
The climb in mortgage rates from earlier this year—up from 5.75% in March—significantly impacts monthly borrowing costs for many potential homebuyers. However, buyers with strong credit scores, substantial down payments, or those who negotiate favorable loan terms may still find rates below the national average. Options such as paying mortgage points upfront can lower interest rates, though they increase closing costs, while adjustable-rate mortgages offer initial lower rates that could change later.
Refinancing has also become more expensive, with the average rate for a 30-year refinance at 7.41% and 6.75% for a 15-year refinance as of mid-September. Homeowners with existing lower-rate mortgages may find refinancing less appealing unless the potential savings are significant enough to outweigh the costs involved.
Looking ahead, the trajectory of mortgage rates will largely depend on future economic conditions, inflation trends, and subsequent Federal Reserve policy decisions. While rates could fluctuate, there is no assurance that delaying a mortgage or refinance will result in lower borrowing costs.