US mortgage rates move mostly lower ahead of the Fed decision, with the 30-year fixed rate slipping to 7% and refinance rates remaining mixed.

Updated on: Sep 16, 2026, 22:31:35 IST

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US mortgage rates moved mostly lower on Wednesday, September 16, as markets waited for the Federal Reserve to finish its two-day rate-setting meeting. The average 30-year fixed mortgage rate slipped to 7.00%, down 2 basis points from Tuesday. According to Zillow’s lender marketplace data.

The 30-year fixed rate is now right at the 7% mark. This rate is widely watched by homebuyers because the 30-year mortgage is one of the most common home-loan options in the US. According to the latest Zillow data cited by Yahoo Finance.

Mortgage rates today

The 15-year fixed mortgage rate moved in the opposite direction. It rose 4 basis points from Tuesday to 6.36% on Wednesday. The 5/1 adjustable-rate mortgage (ARM) saw a bigger drop. Its average rate fell 12 basis points from Tuesday to 7.21%.

Here are the main mortgage rates for Wednesday, September 16:

• 30-year fixed: 7.00%
• 20-year fixed: 7.06%
• 15-year fixed: 6.36%
• 5/1 ARM: 7.21%
• 7/1 ARM: 6.64%
• 30-year VA: 6.51%
• 15-year VA: 6.17%
• 5/1 VA: 6.38%

Today's mortgage rates

These figures are national averages, not the exact rate every borrower will get. Zillow rounds the rates to the nearest hundredth, so an individual borrower's offer can be different depending on factors such as the lender and loan details. Yahoo Finance noted that the figures are national averages rounded to the nearest hundredth.

Refinance mortgage rates

Mortgage refinance rates were also mixed on Wednesday. The average 30-year refinance rate was 6.99%, while the 20-year refinance rate was 6.88% and the 15-year refinance rate was 6.41%.

Other refinance rates included a 5/1 ARM at 7.06% and a 7/1 ARM at 6.76%. For VA refinance loans, the rates were 6.51% for 30-year, 6.08% for 15-year and 5.86% for 5/1 VA loans.

Refinance rates do not always move exactly like home-purchase mortgage rates. While refinance rates are often higher than rates for buying a home, that is not always the case. Yahoo Finance noted this difference in its mortgage-rate data.

Fed decision today

The Fed decision is the key event for markets today. The Federal Reserve is concluding its two-day meeting on Wednesday, and investors are watching the decision and the central bank's comments for clues about the path of interest rates.

A Fed rate decision does not directly set the mortgage rate that a homebuyer receives. Mortgage rates are influenced by broader market conditions, including movements in bond markets and expectations about future interest rates. The mortgage rates in this update are based on Zillow's lender marketplace rather than a rate directly announced by the Fed.

30-year fixed mortgage

A 30-year fixed mortgage offers more predictable monthly payments. The interest rate stays fixed for the life of the loan, so borrowers generally do not face yearly changes in their mortgage rate. Changes in property taxes or homeowners insurance, however, can still affect the total monthly housing payment.

The main benefit of the 30-year loan is lower monthly payments. Borrowers get more time to repay the same amount of money, which spreads the payments over a longer period. The trade-off is that a 30-year mortgage can cost much more in interest over time. The longer repayment period, combined with a higher rate than shorter-term fixed loans, can lead to substantially higher total interest payments over the life of the loan.

15-year fixed mortgage

A 15-year fixed mortgage comes with a lower rate but higher monthly payments. The borrower has to repay the same loan amount in half the time, which makes each monthly payment larger.

The shorter loan term can reduce the total interest paid. Because the borrower pays off the mortgage 15 years earlier and usually gets a lower interest rate, the total interest cost can be much lower than with a 30-year mortgage.

Homebuyers can use a mortgage calculator to see how different rates and loan terms affect their monthly payments. The calculator can also include costs such as private mortgage insurance (PMI) and homeowners association (HOA) dues for a more complete estimate. Yahoo Finance recommended using its mortgage payment calculator for these calculations.

For buyers watching today's 7% mortgage rate, the Fed decision could be especially important for the broader interest-rate outlook. However, mortgage rates can move based on market expectations and other economic factors, so a Fed decision does not automatically mean mortgage rates will move by the same amount.

For now, the key takeaway is that the average 30-year fixed mortgage rate has slipped to exactly 7.00% on Wednesday, while the 15-year rate has risen to 6.36%. The moves come as investors await the Federal Reserve's decision later today.

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