What happened
On October 28, 2026, the Federal Reserve kept its benchmark interest rate unchanged. The target range for the federal funds rate stays at 3¾ to 4 percent.
The vote was 10 to 2. Governor Lisa D. Cook and Cleveland Fed President Beth M. Hammack dissented; both preferred raising the rate by a quarter point.
The decision follows September 16, 2026, when the Fed raised the range by a quarter point. It had held the range at 3½ to 3¾ percent at every meeting earlier in the year.
In its statement, the Fed said:
- the economy is “expanding at a strong pace”
- job gains have kept pace with the workforce, and the unemployment rate has changed little
- inflation “remains elevated”
The Fed's next meeting is scheduled for December 8–9.
What it means for you
The Fed doesn't set mortgage rates. The federal funds rate is what banks charge each other overnight. Mortgage rates tend to follow longer-term bond markets, which react to inflation, jobs data and what the Fed signals about the future.
If you have a fixed-rate mortgage, nothing changes. Your rate and principal-and-interest payment stay the same for the life of the loan.
If you have an adjustable-rate mortgage or a HELOC, those rates are often tied to short-term benchmarks. A hold means no change from this decision, but future increases could affect what you pay at your next adjustment.
If you're buying or refinancing, the reports to watch are monthly inflation and jobs data. They often move mortgage rates more than a Fed meeting where nothing changes.
What it doesn't mean
- It doesn't mean mortgage rates will stay put. They can move daily, even when the Fed doesn't act.
- It doesn't mean increases are over. Two Fed officials wanted a hike at the October meeting, and the Fed said it will decide based on new data.
What to do next
If you're thinking about buying or refinancing, get a quote and talk with a loan consultant about when to lock your rate. CapCenter offers ZERO Closing Costs. Have equity? CapCenter offers fixed-rate home equity loans. See capcenter.com for details, today's rates and APRs.
Related guides:
Restrictions apply. CapCenter is an Equal Housing Lender. NMLS ID #67717.
Sources: FOMC statement, October 28, 2026; FOMC statement, September 16, 2026; FOMC meeting calendar.
