U.S. mortgage rates have stayed above 7% following a recent interest rate hike by the Federal Reserve, compounding the financial burden on potential homebuyers. The Fed’s decision to raise its target interest-rate range to 3.75%–4% comes amid persistent inflation, which remains above the central bank’s 2% target.
While the Federal Reserve’s policy decisions influence borrowing costs, mortgage rates are also shaped by broader financial market conditions, inflation expectations, and investor demand. Consequently, the Fed’s latest rate adjustment does not directly dictate mortgage rate changes.
As of September 17, 2026, the average rate on a 30-year fixed mortgage in the U.S. stood at 7.37%, a noticeable increase from 5.75% in March. Meanwhile, the average 15-year mortgage rate was 6.62%. These elevated rates have significantly raised monthly payments for many prospective homeowners.
Despite the overall rate increases, borrowers with strong credit profiles, substantial down payments, or favorable loan terms might still secure rates below the national average. Additionally, some buyers may choose to pay mortgage points upfront to lower their interest rate, though this increases closing costs. Adjustable-rate mortgages offer another option, albeit with the risk of rate changes after an initial fixed period.
The cost of refinancing has also risen, with the average 30-year refinance rate at 7.41% and the 15-year refinance rate at 6.75% as of mid-September. Homeowners with existing mortgages at lower rates may find the current refinancing environment less appealing unless potential long-term savings justify the upfront costs.
Future mortgage rates will largely depend on ongoing inflation trends, economic conditions, financial market dynamics, and the Federal Reserve’s future policy decisions. While rates may fluctuate, there is no assurance that waiting will lead to lower borrowing costs.