Market Stats
Could the Fed Raise Rates This Month?
By David Golovin · September 9, 2026 · 2 min read
As of this week, the 30-year fixed mortgage averaged 6.71%, the highest in over a year. Markets are now split on whether the Federal Reserve will raise its benchmark rate at its next meeting, a move that would push rates even higher.
Source: Freddie Mac Primary Mortgage Market Survey, September 3, 2026
What is pushing rates up
Iran tensions are pushing oil toward $100 a barrel, and strong jobs data gives the Fed room to hike. Both push the 10-year Treasury yield up, and mortgage rates follow it.
Source: NerdWallet, Mortgage Rates Today, September 8, 2026
| Date | 30-yr fixed | Context |
|---|---|---|
| Sept 3, 2026 | 6.71% | Year high, up from 6.66% prior week |
| Aug 28, 2026 | 6.66% | Freddie Mac weekly average |
| Sept 3, 2025 | 6.50% | One year prior |
| Jan 2021 | 2.65% | All-time low (these loans are now assumable) |
What a hike would mean for buyers
A new loan gets more expensive. A rate lock protects you between contract and close. An assumable mortgage skips the market entirely: you take over the seller’s existing rate.
The 2021 loans still out there
Millions of FHA and VA loans from 2020-2022 sit under 3%. Those do not move when the Fed moves. Roots shows homes with those loans for free.
FAQ
Does the Fed directly set mortgage rates?
No. The Fed sets the overnight lending rate between banks. Mortgage rates are tied to the 10-year Treasury yield, which responds to inflation expectations, economic data, and global events. A Fed hike can push Treasury yields higher, which pushes mortgage rates higher, but the relationship is indirect.
What would a Fed rate hike mean for someone buying a home now?
A hike would likely push the 30-year fixed rate higher from its current year-high of 6.71%. That increases the monthly payment on a new loan. It would not affect someone who has already locked a rate or someone assuming a seller’s existing low-rate loan.
How does assuming a mortgage help if rates go up?
An assumption lets you take over the seller’s existing rate, regardless of what the market does. If the seller locked 2.75% in 2021, you inherit that rate. Rates going up or down after your closing date have no effect.