Mortgage rates in the United States continue to surpass 7%, following the Federal Reserve’s latest interest rate hike, which raised its target range to 3.75%–4%. As of September 17, 2026, the average 30-year mortgage rate stood at 7.37%, with the 15-year mortgage rate at 6.62%. This rise in rates has significantly increased borrowing costs for potential homebuyers since March when the 30-year rate was 5.75%.
Although mortgage rates do not directly correlate with the Federal Reserve’s policy rate, they are influenced by factors such as financial markets, inflation expectations, and investor demand. Consequently, the Fed’s recent decision does not automatically result in an equivalent rise in mortgage rates.
Prospective borrowers can potentially find rates below the national average based on factors like credit score, down payment, lender, and loan terms. Options such as paying mortgage points upfront can reduce the interest rate, though it increases costs at closing. Another alternative is adjustable-rate mortgages, which offer initial lower rates that can change over time.
Refinancing has also become more expensive, with the average 30-year refinance rate at 7.41% and the 15-year refinance rate at 6.75% as of mid-September. Homeowners with existing mortgages at lower rates may find refinancing less appealing unless the savings justify the associated costs.
Looking ahead, future mortgage rates will hinge on factors such as inflation, economic conditions, and financial market trends, along with expectations for further Federal Reserve policy decisions. While there is no certainty that rates will decrease, borrowers should carefully consider their timing and options.