Today’s Mortgage Rates, September 16: Rates Hold Near 7% as Fed Meeting Concludes Today

On September 16, mortgage rates are holding near 7% as the Federal Reserve wraps up its highly anticipated meeting today. The 30-year fixed dipped slightly to 7.00%, while the 15-year fixed edged up to 6.36% and the 5/1 ARM eased to 7.21%. The Fed's decision — and its tone on future rate moves — could meaningfully shift mortgage rates in the days ahead. Here's the full rate breakdown and what to watch for as the Fed's announcement lands.

Today's Mortgage Rates, September 16: Rates Hold Near 7% as Fed Meeting Concludes Today

It's always good to know the exact numbers. Here are today's rates, which are mostly lower than yesterday, according to Zillow:

Note: ARM stands for Adjustable-Rate Mortgage. VA loans are for eligible U.S. veterans.

Where Do Today's Rates Really Stand?

Let's break down what these numbers mean.

• Compared to the Pandemic Lows: Remember back in 2021 when you could get a 30-year fixed mortgage for as low as 2.65%? That was an incredible time, but it was truly an outlier. Today's rates are nowhere near that.
• Not the All-Time Highs: Now, let's think about the extreme opposite. Back in 1981, mortgage rates hit a staggering 18.63%. Yikes! So, while 7% feels high, it's a world away from the record highs we've seen.
• Close to the Long-Term Average: When you look at the decades of data, the average 30-year mortgage rate has historically been around 7.23%. So, where we are today, at 7.00%, is actually pretty close to what we’d call “normal” over the long haul. This is according to Freddie Mac’s historical tracking.

What's Making Rates Stick Around 7%?

It's not just random chance that mortgage rates are hovering here. A lot of big economic forces are pushing them up, and it looks like they might stay put for a while. This idea of “higher for longer” is what many people in the market are starting to accept.

Here are some of the main reasons why rates aren't dipping back into the 5% or 6% range anytime soon:

• The 10-Year Treasury Yield is Key: Mortgage rates don't just get decided by the Federal Reserve. They actually follow closely with the 10-year U.S. Treasury Yield. This yield recently crossed an important mark, going over 5%. When that yield goes up, mortgage rates tend to follow.
• Inflation is Still a Worry: Even though we’re not seeing wild price spikes everywhere, inflation hasn't completely disappeared. Plus, the job market is still strong. These things make the Federal Reserve hesitant to lower interest rates. They're worried that if they make borrowing money cheaper too soon, inflation could creep back up. This is why Wall Street is watching the Fed's meeting very closely.
• Government Borrowing and Debt: The U.S. government has to borrow a lot of money to pay for its expenses. With the national debt reaching a massive $40 trillion, bond investors want more money for lending their cash for longer periods. This is called a “term premium,” and when it goes up, it makes borrowing costs for everyone, including home buyers, higher.
• World Events: Things happening around the world can also affect our economy. Conflicts in different regions can cause oil prices to jump, which acts like a hidden tax on everyone and can push up borrowing costs globally.

The Smartest Way to Navigate Today's Market: Shop Around!

When mortgage rates are high, or even just sitting at these higher levels, the single most important thing you can do as a home buyer is to compare offers from different lenders. I can't stress this enough!

Think of it like shopping for anything else – you wouldn't buy the first thing you see, would you? The same goes for mortgages. A study by Bankrate found that people who don't shop around for mortgages can end up paying an average of $78,000 more over the life of their loan compared to those who get at least three different quotes. That's a huge difference!

Here’s my best advice on how to shop for your mortgage:

1. Get Quotes from Different Types of Lenders: In a short period, like within 48 hours, ask for prices from three different kinds of lenders:
   • A traditional bank (like your local bank or a big national one).
   • A direct online lender.
   • An independent mortgage broker.
     Each type of lender might have different rates and fees, so comparing them gives you the best picture.
2. Look Beyond Just the Interest Rate: When you get these offers, they’ll come on a document called a “Loan Estimate.” Don't just look at the interest rate. Pay close attention to the Loan Fees, especially in “Box A.” Lenders sometimes make their advertised interest rate look lower by adding hidden costs, called “points,” which are fees paid upfront.
3. Use Your Quotes as Muscle: Once you have a few solid offers, you can use them to your advantage. If you have a lender you really like, show them a better rate or lower fees from another lender. Ask them if they can match it. Most lenders will want your business and will try to compete.

My Take on It All

With the Fed's meeting concluding today, its decision — and especially its tone on future cuts — will likely matter more than today's modest dip. Rates near 7% aren't historically unusual, sitting close to the long-run average of 7.23%, but “higher for longer” appears to be the operating reality for now. Shopping multiple lenders remains the one lever fully within a buyer's control.

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