U.S. mortgage rates continue to surpass 7% amid the Federal Reserve’s latest interest rate hike, further elevating borrowing costs for potential homebuyers. As of September 17, 2026, the average 30-year mortgage rate stood at 7.37%, while the 15-year rate was 6.62%, marking a notable rise from the 5.75% recorded in March.
The Federal Reserve recently increased its target interest-rate range to 3.75%–4% as it seeks to curb inflation, which remains above the 2% target. However, mortgage rates are influenced by a variety of factors, including financial markets, inflation expectations, and investor demand, meaning the Fed’s latest rate hike does not directly lead to an equivalent rise in mortgage rates.
Prospective borrowers might still find opportunities to secure rates below the national average, depending on factors such as their credit score, down payment, lender, and loan terms. Options like paying mortgage points upfront can help reduce interest rates at the cost of higher closing expenses, while adjustable-rate mortgages offer another alternative, though these rates may fluctuate after an initial period.
Refinancing options have 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 significantly lower rates may find refinancing unattractive unless potential savings outweigh the associated costs.
The trajectory of future mortgage rates will largely depend on inflation trends, economic conditions, and the financial markets, as well as expectations regarding further policy decisions by the Federal Reserve. While a shift in rates could occur, there remains no certainty that delaying a home purchase or refinance will lead to lower borrowing costs.