09/17/2026
The Federal Reserve today raised its benchmark interest rate by 25 basis points to a target range of 3.75%-4.00% and signaled that another increase remains possible later this year. The rate hike is part of an effort to combat inflation brought on by a strengthening economy, rising energy prices and other factors.
While the federal funds rate does not directly set mortgage rates, changes in monetary policy can influence borrowing costs, affordability, and buyer sentiment. As market conditions evolve, REALTORS® play a critical role in helping consumers evaluate financing options, understand purchasing power, and make informed real estate decisions.
To stay up to date on market conditions, read C.A.R.’s weekly market update, Market Minute (published each Monday) at www.car.org/marketdata/marketminute. Read more about the Fed’s decision at on.car.org/4yLW0al.