10/29/2026
Important update for realtors and their clients: The Federal Reserve held its benchmark federal funds rate steady this week, but that doesn't mean mortgage rates are coming down. Higher inflation and rising Treasury yields continue to keep the 30-year fixed rate near 7.37%.
Here's what it means for your buyers:
A December rate hike is still possible: The Fed voted 10-2 to keep the federal funds rate at 3.75%–4%, but another increase could come in December. While the Fed doesn't directly set mortgage rates, its decisions can influence where rates go next.
Inflation picked up in September: The Fed's preferred inflation measure, the PCE price index, rose 0.5% for the month, its biggest increase in six months. Consumer prices were up 3.6% from a year ago, well above the Fed's 2% target, making it harder for rates to come down.
Longer-term borrowing costs are still rising: The 10-year Treasury yield climbed to 5.04%, while the two-year yield fell to 4.70%. Since mortgage rates tend to follow longer-term Treasury yields, lower short-term yields don't necessarily mean lower rates for buyers.
Energy costs and AI investment add uncertainty: Fed officials shared concerns that higher energy costs and growing investment in artificial intelligence could push prices higher, making future rate decisions harder to predict.
With rates uncertain, understanding monthly payments and financing options can help buyers make informed decisions without waiting for rates to fall. If you have clients thinking about buying, send them my way. I'll help them explore their options and find what works for their budget.
