09/15/2026
The Federal Reserve meets tomorrow, and there’s growing speculation around a potential rate hike. but here’s an important distinction for homebuyers: the fed does not directly set mortgage rates.
the federal funds rate primarily influences short-term borrowing, while 30year mortgage rates tend to track longer-term bond yields, especially the 10year treasury. so, if the fed raises rates by 25 basis points (0.25%), that doesn’t mean mortgage rates automatically increase by 0.25%.
markets are forward looking, and a potential hike may already be partially priced in.
what matters most tomorrow is what the fed says about inflation and where rates could go next.
