Updated September 26, 2026
The short answer: The Federal Reserve raised its federal funds target by 0.25 percentage point on September 16, 2026, to 3.75%–4.00%. That does not add 0.25 point automatically to a 30-year mortgage. Mortgage rates respond to bond markets, inflation expectations and lender pricing, often before a Fed announcement. The latest Freddie Mac survey put the average 30-year fixed mortgage at 7.03% on September 24, up from 6.95% the prior week. That is a national survey average, not a quote from 360 Mortgage or an offer of credit.
What the Fed raised—and what it did not
The federal funds rate is a short-term overnight lending benchmark. A fixed mortgage is priced for a much longer period. Investors’ expectations for inflation, Treasury yields, mortgage-backed securities and market risk all affect the rates lenders can offer. A Fed hike can push borrowing costs higher, but the mortgage market may have anticipated the decision; rates can even move the opposite way after an announcement if the outlook changes.
For the primary record, see the Fed’s September 16 statement. For a dated national comparison, see Freddie Mac’s weekly mortgage survey.
What does a higher mortgage rate do to the payment?
Consider a $300,000 loan amortized over 30 years. At 6.75%, principal and interest are about $1,946 per month; at 7.00%, about $1,996; and at 7.25%, about $2,047. A quarter-point difference is roughly $50 a month in this illustration. Property taxes, homeowners insurance, mortgage insurance, HOA dues and closing costs are excluded. Your actual rate and payment depend on the loan and your qualifications.
Use our mortgage calculator to test a home price, down payment and rate that fit your own budget. When comparing lender offers, look at both the monthly payment and the cash required at closing; our closing costs guide explains the latter.
Will the Fed hike lower home prices?
Higher financing costs can reduce what a given buyer can afford and may cool demand. They do not guarantee a price decline. The local number of homes for sale, jobs, new construction, seller concessions and the share of owners holding low-rate mortgages also matter. One neighborhood may offer more room to negotiate while another remains competitive. Evaluate the actual asking price and comparable sales rather than assuming a nationwide rate change will produce a specific discount.
A seller-paid rate buydown or a price reduction can have different effects on your payment and cash to close. Ask for side-by-side estimates before choosing; eligibility and contribution limits vary by loan program. If your down payment is limited, our FHA versus conventional comparison is a starting point for weighing mortgage insurance and upfront costs.
Should you buy now, wait, or refinance later?
Buy when the full payment fits comfortably and you expect the home to serve your needs for a sensible period. Waiting for a particular Fed meeting is a bet on both rates and home prices. Refinancing later may be possible, but it has costs, depends on qualification and future rates, and is not guaranteed. Current owners should compare the proposed loan with their existing rate, remaining term and break-even period; read our guide to deciding when to refinance.
Next step: Ask 360 Mortgage for a personalized payment and cash-to-close comparison using your purchase price, down payment, credit profile and property location. We can help you compare available loan structures without relying on a prediction about the next Fed decision.
360 Mortgage Inc., NMLS 80777. Educational information only; not a commitment to lend or a rate quote. Loan approval, terms and availability depend on underwriting, property and state licensing. Survey data and rates are dated and may change.
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