09/17/2026
📈 So…what’s going on with interest rates? And what should we do now? 🏡💳
The Fed just raised its benchmark rate by 0.25%, bringing it to 3.75%–4.00%. Mortgage rates are also moving higher — the average 30-year fixed rate is around 6.97% this week, compared with 6.76% last week. And credit-card rates are already very high, so anyone carrying a balance is definitely feeling the pressure. (Federal Reserve)
Why are rates going up? Basically, inflation is still higher than the Fed wants, so the Fed is trying to cool things down. But here’s something important: the Fed rate and mortgage rates are not the same thing. Mortgage rates are influenced by the bond market and many other factors, so a 0.25% Fed move does NOT automatically mean your mortgage rate goes up exactly 0.25%. (Federal Reserve)
So what about 2027? Honestly, I wouldn’t sit around waiting for some magic number. The Fed’s own September projections show a median federal-funds rate of about 4.1% at the end of 2027, which suggests rates could remain relatively elevated rather than suddenly dropping back to the 3%–4% mortgage rates many people remember. Of course, projections can change as inflation, jobs, the economy and other conditions change. (Federal Reserve)
My advice as a Realtor? If you’re thinking about buying next year, use this time to get ready: improve your credit, pay down high-interest credit cards, save your down payment and closing costs, build some cash reserves, and talk with a lender early. If the right home comes along and the payment comfortably fits your budget, you don’t necessarily have to wait for the “perfect” rate. And if rates eventually come down, refinancing may be an option. For small-business owners, I’d be even more careful with variable-rate debt and make sure your cash flow can handle higher borrowing costs.
At the end of the day, we can’t control interest rates — but we can control how prepared we are. 🏡❤️
I’m watching the market closely and will keep sharing what I’m seeing here. If you’re thinking about buying, selling, investing, or just want to understand what these changes mean for you, feel free to reach out.
Lena Vo | Broker / Realtor®
Winvo Realty
📞 512-598-9999
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