Mortgage Rates This Week – September 17, 2026

Mortgage rates moved higher again this week as persistent inflation concerns pushed Treasury yields toward 5% and the Federal Reserve raised its benchmark interest rate for the first time in three years. The 30-year fixed mortgage rate at the time of this post is 6.500%, with a 6.735% APR and 2.250 points, or 7.000% with a 7.025% APR and 0.101 points, for top-tier borrowers who put 25% down and have a credit score of 780 or higher. The 15-year fixed mortgage rate for the same category of borrowers is 5.875%, with a 6.246% APR and 2.191 points; or 6.500%, with a 6.577% APR and 0.333 points.

The biggest development this week came Wednesday, when the Federal Reserve raised the federal funds target range by 25 basis points to 3.75%-4.00%, its first rate increase since 2023. The decision was unanimous, with policymakers citing solid economic activity, resilient domestic spending, and inflation that remains elevated. The Fed said the increase would support a more timely return of inflation toward its 2% goal.

The rate increase itself was widely anticipated, but the Fed’s outlook was more important for financial markets. Policymakers signaled that additional tightening may still be necessary, with 16 of 18 officials projecting at least one more increase before the end of the year. Fed Chair Kevin Warsh emphasized the need to restore price stability while noting that economic activity has remained resilient despite higher borrowing costs. That message reinforced expectations that rates may remain higher for longer rather than quickly reversing course after this week’s increase.

The bond market had already been moving in that direction before the Fed meeting. The 10-year Treasury yield climbed from 4.83% on September 9 to 5.00% on September 15, reflecting concerns around persistent inflation, energy prices, and the prospect of additional monetary tightening. Because mortgage rates tend to follow longer-term Treasury yields more closely than the federal funds rate itself, that rise has translated directly into higher borrowing costs for homebuyers.

For mortgage borrowers, the impact is visible in this week’s pricing. The 30-year fixed rate moved from 6.375% last Thursday to 6.500% today, while the 15-year increased from 5.625% to 5.875%. The broader market has moved in the same direction: MBA’s average conforming 30-year rate reached 6.97% last week, up from 6.85%, its highest level since May 2025. Other daily national measures have moved above 7% this week.

Mortgage application activity weakened as rates increased. Total applications fell 4.1% for the week ending September 11, with purchase applications down 1% and refinance applications falling 9%. Purchase applications were also 19% below the same week last year, while the refinance share of total mortgage activity declined from 40.9% to 39.4%. The data show the effect that the latest increase in borrowing costs is having on both prospective buyers and homeowners considering refinancing.

Housing data released this week also reflected those affordability pressures. U.S. homebuilder sentiment fell to a 12-month low in September as higher mortgage rates weighed on prospective buyer traffic and sales expectations. Single-family housing starts did rebound in August, but permits for future construction declined, suggesting builders remain cautious about the outlook for demand. Pending home sales increased unexpectedly in August, although the broader trend remains subdued as affordability continues to constrain the market.

The Fed’s September decision removes one immediate source of uncertainty, but it does not necessarily mean mortgage rates have reached their peak. Mortgage rates do not move directly with the federal funds rate, and the outlook from here will depend heavily on inflation, employment, energy prices, and longer-term Treasury yields. With policymakers signaling that additional tightening remains possible, incoming economic data will continue to determine whether this month’s increase is enough to slow inflation or whether another hike becomes necessary later this year.

Fall Buying Season

As the housing market moves further into the fall buying season, buyers are facing a more challenging rate environment than they were just a few weeks ago. The 30-year fixed rate has moved from 6.125% at the beginning of September to 6.500% today, increasing monthly borrowing costs even as the seasonal slowdown in housing activity begins to reduce competition in some markets.

In Washington state specifically, buyers may still benefit from increased inventory and greater negotiating leverage compared with tighter markets in recent years. As homes spend longer on the market during the fall, motivated sellers may be more willing to negotiate on price, closing costs, seller concessions, or rate buydowns. A fully underwritten pre-approval can strengthen an offer when the right property appears, while rate buydowns and 7/1 ARM products remain worth modeling for buyers with a defined time horizon. With mortgage rates responding quickly to inflation data and Treasury yields, comparing the full cost of different financing structures remains more useful than waiting for a specific headline rate.

Current Mortgage Rates This Week for WA, OR, ID, CA, and CO From Sammamish Mortgage
09/17/2026

**Conforming assumptions – $800k Purchase Price, 25% Down, 800+ Credit
**Jumbo assumptions – $1.5MM Purchase Price, 25% Down, 800+ Credit

Washington State mortgage rates

Mortgage rates In Oregon

Mortgage rates in Idaho

Mortgage Rates for Colorado

California Mortgage Rates

National Average Mortgage Rates:

(State-specific rates sourced from Sammamish Mortgage – National Average rates sourced from Zillow)

Consumer Price Index, Consumer Sentiment & Inflation

Inflation is undoubtedly the most significant driver of interest rates. With that in mind, we continue to focus on inflation data and expectations going forward to gauge what we can expect to see in interest rates in the coming months. Inflation is re-accelerating above the Fed’s target of 2% as of March 2026. While current inflation numbers would typically warrant a lower Fed Funds Rate, the Fed has indicated that it wants to see the impact of tariffs before considering additional rate cuts.

Consumer Price Index (CPI) March = 0.9% – Annual = 3.3%  

Producer Price Index (PPI) March = 0.5% – Annual = 4.0%

Personal Consumption Expenditures (PCE) February = 0.4% – Annual = 2.8% 

Overall, it is difficult to predict what will happen with mortgage rates in the near term. With global economic turmoil, banking issues, inflation, and thus far a far more resilient economy than many expected, trying to predict rates from one day to the next to time a rate lock is almost impossible or at least requires luck. However, looking at a longer time horizon, it’s much easier to see that there is an excellent chance we could see rates move lower from current levels, providing an opportunity for recent and existing buyers to potentially refinance in the future.

See Current Rates

What the Fed rate hike means for borrowers, savers, and investors

When the Federal Reserve raises interest rates, it affects various aspects of the economy, including the housing market, savings, and investment.

For potential homebuyers, a Fed rate hike typically leads to an increase in mortgage rates in the early stages of a tightening cycle; however, if the market thinks the Fed rate increases will hurt the economy and cause inflation to decrease, mortgage rates can improve when the Fed raises the Fed Funds Rate. It’s important to note that the Fed does not control mortgage rates. Fed rate increases do directly impact credit card rates, car loans, and commercial loans, which are shorter in duration than a typical 30-year fixed mortgage.

For savers, a Fed rate hike may lead to higher returns on savings accounts and certificates of deposit (CDs). In addition, banks and other financial institutions may increase the interest rates they pay to savers to remain competitive, which can benefit savers looking to earn more on their savings.

A Fed rate hike may impact the stock and bond markets for investors. Typically, when interest rates rise, the value of stocks and bonds can fall as investors may shift their money to fixed-income investments with higher returns. However, the impact of a rate hike on the markets can be complex and depends on various factors, such as the overall state of the economy, inflation expectations, and global events.

Loan Limits Increased For 2026

Loan limits have increased for 2026. Each county in every state has its loan limit. That said, the new standard conforming loan limit is $832,750, and high balance limits in select high-priced areas can go up as high as $1,063,750 for 1-unit properties in 2026.

Visit our 2026 conforming loan limit pages for Washington State, Oregon, Idaho, California, and Colorado.

For FHA loan limits, see our 2026 FHA pages for Washington State, Idaho, Colorado, California, and Oregon.

Check out our mortgage loan limit tool for conventional, FHA, and VA loans.

Instant Mortgage Rate Quote

Ready to Apply For a Mortgage?

Do you have questions about rates this week and home loans? Or are you ready to apply for a mortgage to buy a home? If so, Sammamish Mortgage can help. We are a local mortgage company from Bellevue, Washington, serving the entire state, as well as Oregon, Idaho, California & Colorado. We offer many mortgage programs to buyers all over the Pacific Northwest and have been doing so since 1992. Our programs include the Diamond Homebuyer Program, Cash Buyer Program, and Bridge Loans. Contact us today with any questions you have about mortgages.