The Federal Reserve left its benchmark interest rate unchanged on October 28, 2026, keeping the federal funds rate in a range of 3.75% to 4%. The message from Chair Kevin Warsh's Fed was clear: it is still more worried about inflation than about slowing the economy.
If you are planning to buy or sell a home in South Florida in the next few months, here is what happened and what it means for you.
What the Fed decided
- Rates held. The federal funds target range stays at 3.75% to 4%.
- Two members wanted a hike. The vote was 10 to 2. Governor Lisa Cook and Cleveland Fed President Beth Hammack both preferred raising rates by another quarter point.
- Inflation is still the concern. The Fed's statement said inflation "remains elevated" and that the economy is expanding at a strong pace, with job gains keeping up with the growth of the workforce.
- This follows a hike in September. At its September 16 meeting, the Fed raised rates by a quarter point. The minutes from that meeting showed most officials thought another increase would likely be appropriate by the end of the year.
Our outlook: more increases ahead
The next Fed meeting is December 8 and 9. We expect the Fed to raise rates again at that meeting, and again in early 2027. Two officials already voted for a hike today, most officials said in September that another increase would likely be needed by year end, and the Fed's own statement says inflation remains elevated while the economy keeps growing at a strong pace. Until inflation clearly comes down, we do not see the Fed easing up.
For home buyers, that means mortgage rates are more likely to stay high, or move higher, than to fall over the next several months.
What it means for mortgage rates
The Fed does not set mortgage rates. A 30-year mortgage rate follows the bond market, especially the 10-year Treasury, and what investors expect inflation and the Fed to do over the coming years. That is why mortgage rates can move before the Fed acts, or even in the opposite direction on the day of a decision.
Here is where rates stood going into this meeting, according to Freddie Mac's weekly survey for October 22, 2026:
| Loan | This week | A week earlier | A year earlier |
|---|---|---|---|
| 30-year fixed | 7.32% | 7.40% | 6.19% |
| 15-year fixed | 6.68% | 6.71% | 5.44% |
Rates are more than a full point higher than a year ago. On a $400,000 loan, that is the difference between a principal and interest payment of about $2,447 a month at 6.19% and about $2,748 at 7.32%. That is about $300 more every month, or roughly $3,600 a year, before taxes and insurance.
If you are buying
- Do not wait for the Fed to bail you out. With more rate increases likely in December and early 2027, waiting could mean a higher rate, not a lower one. If the right home comes along, it may make more sense to buy now and refinance later if rates come down.
- Get your rate lock strategy in place. Rates can move a quarter point in a few weeks. Talk with your lender about how long a lock you need and whether a float-down option is available.
- Ask about builder incentives. Many builders offer to pay down your interest rate when you use their preferred lender. A temporary 2-1 buydown at today's rates would put the first-year payment on a $400,000 loan at about $2,226 and the second year at about $2,481 before it settles at the full rate. Compare that against a price reduction, since a lower price helps you for the life of the loan. Our New Construction guide covers new communities across all five counties.
- Look for assumable loans. FHA and VA loans can often be taken over by a qualified buyer at the seller's original rate. A seller who financed in 2021 may have a rate in the 3% range. These deals take more time and often need cash to cover the seller's equity, but the savings can be large.
- Remember that cash is common here. Many South Florida buyers, especially in condos and 55+ communities, pay cash. If you are financing, a strong pre-approval and a clean offer help you compete.
If you are selling
- Price for today's payments, not last year's. A buyer who could afford a $500,000 home at a 6% rate can afford noticeably less at 7.3%. Homes that are priced right are still selling. Overpriced homes are sitting.
- Consider offering a rate buydown instead of a price cut. Paying for a buyer's rate buydown can lower their monthly payment more than a similar price reduction would, and it keeps your sale price higher. Your agent and the buyer's lender can run the numbers both ways.
- If you have an assumable loan, say so. An FHA or VA loan with a low rate can be one of the strongest selling points your home has right now.
The bottom line
The Fed held steady today, but we expect it to raise rates in December and again in early 2027. For buyers, that means planning around rates in the 7% range or higher and using every tool available to lower the payment. For sellers, it means pricing to what buyers can afford at today's rates. Either way, the right strategy depends on your numbers and your timeline.
If you want to talk through yours, reach out to Paul Christle or call (561) 420-9620. You can also start with our Find Your Home tool, or see what your home is worth today on our home value page.
Sources: Federal Reserve FOMC statement, October 28, 2026; FOMC minutes, September 15 and 16, 2026; Freddie Mac Primary Mortgage Market Survey, October 22, 2026. Payment examples are principal and interest only on a 30-year loan of $400,000 and are for illustration.