09/21/2026
MONDAY MARKET UPDATE:
FED RAISES RATES...The Federal Reserve raised its benchmark rate by 0.25% to 3.75%–4.00%, its first increase in three years. The move was widely expected, but the possibility of another hike this year kept pressure on borrowing costs.
Mortgage rates felt that pressure quickly. The average 30-year fixed rate jumped from 6.76% to 6.95%, the highest since January 2025, making monthly payments more expensive for buyers already navigating elevated home prices.
Housing still offered buyers some leverage. Inventory remained elevated, asking prices stayed below last year's level, and homes sold faster than a year ago, suggesting motivated buyers are still finding opportunities despite higher rates.
The week ended with the Dow down 1.6%, to 52,573; the S&P 500 down 0.8%, to 7,657; and the Nasdaq down 0.7%, to 26,333.
The 10-year Treasury yield reached 5% Friday, adding pressure to mortgage rates. Until longer-term yields ease, financing costs are likely to remain one of the biggest hurdles facing buyers this fall.
DID YOU KNOW...Pending home sales actually increased 0.3% in August despite elevated mortgage rates. Contract activity remains below last year, but the small gain shows that some buyers are still moving forward when the right opportunity appears
Source: Supreme Lending Jairia Williams - Loan Officer NMLS #2720935
