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30-Year Mortgage Rate Falls to 7.00% Ahead of Fed Meeting

By Markets Desk · 2026-09-16 · 1 min read
A set of brass house keys resting on a wooden table next to a closed book
Illustration: Tradingbird

Borrowing costs for long-term home loans dropped slightly as the Federal Reserve concludes its policy session.

The average 30-year fixed mortgage rate fell to 7.00% on Wednesday. This represents a two-basis-point decrease from the previous day. The 5/1 adjustable-rate mortgage declined by 12 basis points to 7.21%. These moves occurred ahead of the Federal Reserve's conclusion of its two-day meeting.

The 15-year fixed rate rose by four basis points to 6.36%. Refinance rates for the 30-year fixed term stood at 6.99%. The 15-year refinance rate was 6.41%. These figures are national averages reported by Zillow.

Refinance costs remain above purchase rates

Lenders typically charge higher interest rates for refinancing than for new purchases. The 30-year fixed refinance rate is currently one basis point lower than the purchase rate. The 15-year fixed refinance rate is five basis points higher than the purchase rate. Borrowers should expect these discrepancies when comparing offers.

Shorter terms offer lower rates

Fifteen-year fixed loans carry a lower interest rate than thirty-year loans. The 15-year fixed rate is 6.36%, while the 30-year rate is 7.00%. This difference reflects the shorter repayment period. Borrowers who choose the 15-year term pay less total interest over the life of the loan.

Adjustable products show larger daily swings

The 5/1 ARM dropped to 7.21% on Wednesday. This is a 12-basis-point decline from Tuesday. The 7/1 ARM is priced at 6.64%. Adjustable-rate mortgages lock in the rate for a set period before adjusting annually. The initial rate is often lower than fixed-rate alternatives.

Based on reporting by Yahoo Finance, compiled by the Tradingbird desk.

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