Fed Rate Hike Sinks Mortgage Rates to Near-7% as Affordability Worries Rise

The Federal Reserve has hiked its key interest rate, causing mortgage rates to soar nearly to 7%. This move is expected to impact affordability concerns for homebuyers and existing homeowners. According to a news conference held by Federal Reserve Board Chairman Kevin Warsh on September 16, 2026, the key rate hike aims to combat rising inflation.

The recent interest rate hike has already started to affect mortgage rates, with some experts predicting that this could lead to a decrease in home sales and prices. The increasing cost of borrowing is likely to make homeownership more challenging for many individuals and families.