Experts say the Fed could still hike rates in December
“The bond market expected the Federal Reserve to leave interest rates unchanged at today’s meeting, but anticipates one or two rate increases in the coming months, possibly beginning in December,” she added.
“We can hope that the markets remain stable and last week’s rate improvements hold. Where mortgage rates go next will largely depend on oil prices and the war in Iran.”
Will the midterms bring lower mortgage rates? Not everyone thinks so. Glen Weinberg of Fairview Commercial Lending believes broader economic pressures could keep rates elevated regardless of the election outcome. https://t.co/d0Vlj3f3Sy
— Mortgage Professional America Magazine (@MPAMagazineUS) October 26, 2026
Mortgage rates track Treasuries, not the Fed
Jeff Ostrowski, Housing Market Analyst at Bankrate, said the hold underscores a dynamic familiar to brokers.
“The Fed doesn’t control mortgage rates, a reality underscored by the central bank’s move in mid-September: The Fed raised its benchmark rate a quarter point, and mortgage rates jumped three-quarters of a point in a month. The lesson? Mortgage rates move with 10-year Treasury yields, not the federal funds rate. And 10-year yields are down to about 5%, compared to 5.3% earlier in October.”
Bankrate Home Lending Expert Linda Bell urged borrowers to look past the headline decision.
