From Yahoo Finance · · 2m
Mortgage rates ease ahead of Fed decision
30-year fixed rates dip to 7.00% as the Federal Reserve prepares to conclude its rate-setting meeting.
In brief
30-year fixed rates dip to 7.00% as the Federal Reserve prepares to conclude its rate-setting meeting. Mortgage rates are moving lower ahead of the Fed's decision, with the 30-year fixed dropping 2 basis points to 7.00% and the 5/1 ARM falling 12 basis points. Originally reported by Yahoo Finance.
30-year rates hit 7.00%
The average 30-year fixed mortgage rate dropped 2 basis points to 7.00% on Wednesday, September 16, 2026, ahead of the Fed's rate decision.
15-year rates climb slightly
The 15-year fixed rate rose 4 basis points to 6.36%, while the 5/1 ARM fell sharply by 12 basis points to 7.21%.
Today's mortgage rate snapshot
Current rates include 20-year fixed at 7.06%, 7/1 ARM at 6.64%, and VA loans ranging from 6.17% to 6.51% depending on term length.
Refinance rates slightly lower
Refinance rates are typically higher than purchase rates but today show competitive pricing, with 30-year refinance at 6.99% and 5/1 ARM refinance at 7.06%.
30-year fixed: predictable payments
A 30-year fixed mortgage offers lower monthly payments spread over a longer period and predictable payments that won't change year to year.
The 30-year interest cost
The main drawback is paying significantly more in total interest over the loan's life due to both a higher rate and longer repayment period compared to shorter-term loans.
15-year mortgages save interest
With a 15-year fixed rate, you'll pay off your home faster at a lower interest rate, potentially saving hundreds of thousands in interest over the loan's life.
15-year trade-off: higher payments
The catch is that monthly payments are significantly higher because you're repaying the same loan amount in half the time.
ARMs offer low intro rates
Adjustable-rate mortgages lock in a lower rate for a set period, like five years with a 5/1 ARM, then adjust annually. This means lower initial payments but unpredictable costs later.
ARM risk: rates can spike
Once the introductory period ends, your rate could increase significantly, making monthly payments unpredictable and potentially costing much more over time.
ARM works if you move early
If you plan to sell or refinance before the intro rate expires, an ARM can save you money without exposing you to future rate increases.
What matters most
Mortgage rates are moving lower ahead of the Fed's decision, with the 30-year fixed dropping 2 basis points to 7.00% and the 5/1 ARM falling 12 basis points.
