The Federal Reserve raised its benchmark interest rate by a quarter point on September 16, pushing the federal funds target range to 3.75%–4.00%. It's a notable shift: this is the Fed's first rate increase since July 2023, following three consecutive cuts in the back half of 2025. Under new Fed Chair Kevin Warsh, who signaled at the Jackson Hole conference in August that inflation was running hotter than the Fed wanted, the central bank chose to reverse course. Officials also left the door open to one more hike before the end of the year.

For anyone watching the housing market in Union, Middlesex, Monmouth, Essex, or Somerset County, the natural question is what this means for mortgage rates. The short answer: rates were already elevated before today's decision, and this doesn't help. The 30-year fixed is hovering right around 7%, with the 15-year fixed near 6.36%. Those numbers reflect not just the Fed's short-term rate but also a 10-year Treasury yiel...

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