The Fed Raised Rates in September. What It Means for Your Move

On September 16, the Federal Reserve raised its benchmark interest rate for the first time in three years, and mortgage rates in the Mid-Willamette Valley are now sitting just above 7 percent. Here is the plain-language version of what that changes for buyers and sellers in Corvallis, Albany, and Salem, and what it does not change. The short answer: it nudges monthly payments up and keeps the market's slower, more balanced pace going, but it does not rewrite the fundamentals of your move.

What the Fed actually did

At its September 15-16 meeting, the Federal Reserve raised its benchmark federal funds rate by a quarter point, to a target range of 3.75 to 4 percent. It was the first increase since 2023, approved unanimously, with the Fed citing elevated inflation and signaling that another move may come later this year, according to coverage of the meeting from CNBC and Kiplinger. The Fed sets short-term rates; it does not set your mortgage rate directly, but mortgage markets react to its signals, and they reacted.

Where mortgage rates sit right now

Freddie Mac's weekly survey put the average 30-year fixed rate at 7.03 percent the week of September 24, up from 6.95 percent the week before and 6.30 percent a year earlier. Other industry surveys, including the Mortgage Bankers Association, showed similar or slightly higher levels in mid-September. So yes, that headline number is back over 7 percent, and it sits about three-quarters of a point above where it was this time last year.

Here is what that means in money. On a $400,000 loan, a 7.03 percent rate costs roughly $195 more per month in principal and interest than a 6.30 percent rate did a year ago. That is a real number in a family budget, and it is why payment math, not headlines, should drive your timing decision.

What it means for buyers in the Valley

The Fed's move does not change the local market's direction, it deepens it. Corvallis remains the tightest of the three, with a median sale price near $568,000 over the past three months, up about 4 percent from a year ago, and homes averaging around 55 days on the market, up from 47 a year earlier. Albany's median sits near $440,000, essentially flat year over year, with homes averaging closer to 65 days. Salem's median is near $450,000, also flat, with homes selling in about 56 days, up from 46. More inventory, longer timelines, and more comparison shopping were already the story. A higher rate simply makes buyers a little pickier.

What it means for sellers

If you are selling, the honest read is this: buyers have less monthly budget than they did a year ago, so they are choosier about price and condition. The encouraging part is that homes are still selling very close to their asking prices. In Salem and Corvallis, average sale-to-list ratios have run around 99 percent of list price in 2026, meaning sellers are getting near asking, just not over it and not instantly. The homes that linger are the ones priced against last year instead of this month.

What it does not change

This is not a crash, and it is not 2022's whiplash. It is a market with more inventory, steadier prices, and buyers who need help making the numbers work. If you own your home, every payment still builds equity. If you are renting, the rent is still not coming back to you. And if you have been waiting for rates to fall, the Fed just moved the other way for now, which makes the waiting math worth revisiting.

The strategies that still work

• Rate buydowns: paying points up front can lower your rate for the first few years, and in this market it is often something the seller will help with.
• Seller concessions: when homes take longer to sell, more sellers will contribute toward closing costs or a buydown to get a deal done.
• Negotiating the price: the price is the biggest lever on your monthly payment, and homes that sit longer leave more room.
• Refinancing later: buying at today's rate and refinancing when rates come down is a plan, not a gamble. It is how many of my buyers own homes right now.

Let's run your numbers

If you have been wondering whether this changes your move, it does not have to be decided by a headline. My piece on waiting for lower rates covers the waiting math in depth , and I am happy to run your actual numbers with you on a short call, no pressure.

Sellers weighing timing can start with a home value estimate based on this month's comps , and we can talk through what September's rate move means for yours specifically.