Fed Meeting Sparks Mortgage Rate Concerns: Will Rates Rise Further?

The Federal Reserve will hold its fifth meeting of 2026 this week, and there's a 35% chance it will increase interest rates. A 25-basis-point hike would send ripples throughout the borrowing space, causing mortgage interest rates to rise further.

Mortgage rates have already spiked in recent months due to geopolitical tensions, overseas conflicts, surging oil prices, and elevated inflation.

Despite this, experts believe that after the Fed meeting, mortgage rates are unlikely to improve and may even rise further. A rate pause could result in a mortgage rate increase if it precedes an inevitable rate hike in September.

Borrowers looking to purchase or refinance should consider locking their interest rate now, as rates may drop in the short-term but will be protected from future hikes with a locked rate.