09/17/2026
The Fed Raised Interest Rates. So What Does That Mean for Real Estate? 🏡
You may have seen the headlines yesterday: the Federal Reserve raised its benchmark interest rate by 0.25%. 📰
So… does that mean mortgage rates automatically went up 0.25%? No.
The Fed does not directly set mortgage rates.
Mortgage rates are influenced by several factors, including Treasury yields, inflation expectations and the overall economy. What the Fed's decision can do, however, is influence those markets, which is why buyers, sellers and anyone considering a move should be paying attention.
And here's the part we think is important: we don't have a crystal ball 🚫🔮
Will the Fed raise rates again?
Will mortgage rates move higher, level off or come back down?
Will home prices keep increasing?
Will higher borrowing costs slow demand?
Nobody can answer those questions with certainty.
What we can look at is what the market is doing right now.
Locally, the latest August numbers actually give us some encouraging signs.
📊In Livingston County, residential pending sales were up 16.2% from last August and closed sales were up 30.5%, while homes were still receiving about 99.4% of asking price. Year to date, sales are also running ahead of 2025.
📊Oakland County is a little more mixed, which is another reminder that there isn't one single "real estate market." Inventory is up 21.5% from last August, giving buyers more choices, while the median residential sale price is still 1.9% higher than a year ago. Year-to-date pending and closed sales are also slightly ahead of 2025.
Now we're adding another variable: higher interest rates. 📈
Could that cool buyer demand? Absolutely.
Could it put more pressure on affordability and cause some sellers to adjust expectations? Yes.
Could rates change direction again based on inflation, economic data and future Fed decisions? Also yes.
Interestingly, the financial markets are trading higher today as investors continue digesting yesterday's Fed decision - another example of why one headline doesn't necessarily tell us what happens next.
✅ For buyers and sellers, our advice isn't to try to perfectly time the market. It's to understand today's market, today's numbers and what they mean for your individual situation.
The market is changing - but homes are still selling, buyers are still buying, and opportunities still exist on both sides of the transaction. 🏡
https://www.reuters.com/business/wall-st-futures-rise-fed-rate-hike-lifts-long-standing-overhang-2026-09-17/
