The Federal Reserve raised its policy rate for the first time in more than three years, bringing the target range to 3.75%-4.00% as inflation remains above its 2% goal. The move has renewed attention on mortgage borrowing costs, with Zillow reporting average rates of 7.37% for 30-year purchases and 6.62% for 15-year purchases on Sept. 17, 2026. Refinance rates were higher, at 7.41% for 30-year loans and 6.75% for 15-year terms. Mortgage rates had fallen below 6% earlier in 2026 but rose after geopolitical tensions pushed inflation higher. Borrowers with strong credit, larger down payments, mortgage points or adjustable-rate mortgages (loans with rates that can change) may find offers below the averages. Whether to lock a rate or refinance depends on individual finances, although refinancing can sometimes make sense with a rate reduction of half a percentage point rather than a full point.