Another Fed rate hike is “reasonable,” but timing stays murky
Lisa Sturtevant, chief economist at Bright MLS, said after the September decision that “the rate hike all but guarantees that mortgage rates will remain stuck at or above the 7% threshold, which creates a psychological and financial barrier that will sharply squeeze affordability and sideline even more prospective buyers.”
Melissa Cohn, regional vice president of William Raveis Mortgage, said last week that the connection is less direct than it looks.
“In 2025, when the Fed was cutting rates, mortgage rates went up,” she said.
“So, who’s to say that in 2026, if the Fed raises rates, that mortgage rates can’t come down?”
The FOMC next meets Oct. 27–28. The Fed has stopped signaling its moves ahead of time, so incoming inflation and jobs data will likely set the tone for borrowers’ rate-lock decisions until then.
