09/16/2026
The Fed’s rate hike today, means the Federal Reserve is deliberately making borrowing more expensive because it believes inflation is still too persistent. It raised its benchmark rate 0.25% to a 3.75%–4.00% target range, its first increase in more than three years.
THE SO WHAT—-
For the overall economy, higher rates tend to slow spending and borrowing. Credit cards, adjustable-rate loans and many business loans can become more expensive relatively quickly. Auto financing can also get more expensive. On the positive side, savers may see better yields on high-yield savings, CDs and Treasury bills. The Fed’s goal is essentially to cool demand enough to get inflation under control without causing an unnecessarily sharp slowdown.
Important to note: The Fed does not directly control mortgage rates.
Mortgage rates are affected more by things like the 10-year Treasury rate, inflation, and what investors think the Fed will do next.
Right now, the 10-year Treasury is around 5%, which is high.
So even though the Fed raised its rate by 0.25%, mortgage rates could remain the same or increase slightly because the bond market is reacting to inflation and future rate expectations. Clear as mud!
Bottom line:
Sellers: price correctly; and pay close attention to your competition in the neighborhood. In a changing market, comps from 3–6 months ago may not tell the whole story. The market should be evaluated weekly, looking at new listings, price reductions, pending sales, days on market, and buyer activity so you can price correctly from the beginning or make adjustments quickly when needed.
Buyers: Focus on the right price, negotiate seller concessions or a rate buy down; and stay within your budget!
