09/19/2026
Fed hikes interest rates for the first time since 2023
Despite protestations from President Trump, the Federal Reserve raised its benchmark interest rate 25 basis points to 3.75%-4% on Wednesday, its first hike since July 2023. The decision was unanimous, as the Fed seeks to bring persistent inflation back toward its 2% target.
The Fed’s updated projections point to the possibility of another hike later this year. Officials now expect headline inflation to reach 3.7% in 2026, up from the 3.6% estimate in June, while the unemployment rate is projected at 4.1%.
The move could add pressure to real estate, where higher borrowing costs have already weighed on activity. For buyers, sellers and investors, another hike could mean higher-for-longer financing costs and continued pressure on affordability and commercial transactions.
