What a Fed rate hike could mean for mortgage rates (and what borrowers need to do now)

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September 15, 2026 / 1:33 PM EDT / CBS News

Over the last couple of years, mortgage rates have been moving in the wrong direction for prospective homebuyers. And, those rate shifts have been even less ideal over the past few months, in particular. Case in point? As of mid-September, the average 30-year fixed mortgage rate is sitting at about 7.43%, up from about 6.43% in early July. That 1% rate jump may look modest on paper, but it can translate into a noticeably higher monthly payment, especially on a large home loan.

And borrowers could soon face another mortgage rate shift. The Federal Reserve is meeting this week, and persistent inflation has put the possibility of another rate hike back into focus. Fed Chairman Kevin Warsh recently indicated that policymakers could have more work to do if they don't gain confidence that inflation is moving sustainably toward the Fed's 2% target, and experts now largely expect a rate hike to occur at the close of the Fed meeting on September 16th.

That doesn't mean mortgage rates will automatically rise…

Original source: https://www.cbsnews.com/moneywatch/