Fed Rate Decision Today: July 2026 FOMC Explained

On Monday, July 27, 2026 at 2:00 p.m. ET, the Federal Reserve will announce its next decision on interest rates. The Federal Reserve is the country's central bank. Most people just call it the Fed.

The Fed does not set your mortgage rate. But what it says usually pushes mortgage rates the same day, either up or down. That matters if you are buying, selling, renting out a place, or paying a mortgage in South Florida.

We wrote this before the number came out. That way you can read what to watch for, then check the real result the moment it lands.

What this report actually is

Eight times a year, a group at the Fed meets and decides what to do with one key interest rate. That rate is the price banks pay to borrow money from each other for a very short time. When the Fed moves that rate, borrowing gets more or less expensive across the whole economy.

The Fed can do one of three things. It can raise the rate. It can lower the rate. Or it can leave the rate alone, which people call a hold. Along with the decision, the Fed writes a short statement about what it might do next. That statement often moves mortgage rates as much as the decision itself.

What the charts show right now

The chart above shows the rate the Fed controls, called the Federal Funds Effective Rate. It sits at 3.6% as of July 2026. That is about the same as last time, when it was also 3.6%. A year ago it was 4.3%. So over the past year, the Fed's rate has moved down.

The second chart shows the average rate on a 30-year fixed mortgage. That is a home loan where the rate stays the same for 30 years. It is 6.6% as of July 2026. Last time it was 6.5%, so it ticked up a little. A year ago it was 6.3%, so it is up over the year.

Notice something. The Fed's rate went down over the past year, but mortgage rates went up. This is why the Fed does not simply control your mortgage. Mortgage rates follow the Fed's mood and the wider bond market, not the Fed's rate one-for-one.

What it means for your mortgage payment

Say you are borrowing $600,000 to buy a home. Even a small change in the rate changes your monthly payment. A move from 6.5% to 6.6% may sound tiny, but on a loan that size it adds up over the years. If the Fed's words push rates down, a future buyer pays less each month for the same house. If the words push rates up, that same house costs more each month to finance.

If you already have a fixed-rate mortgage, tomorrow's decision does not change your payment. Your rate is locked. It only matters if you plan to refinance, which means trading your current loan for a new one at a different rate.

What it means for home prices

Lower rates make monthly payments smaller. That tends to bring more buyers out, which can hold prices up or push them higher. Higher rates make payments bigger. That can cool demand and give buyers more room to negotiate. Prices in Miami-Dade, Broward, and Palm Beach also depend on how many homes are for sale, so rates are only part of the story.

What it means for rent

If you own a place and rent it out, rates shape what you pay to buy the next property. Cheaper loans make it easier to add a rental. When rates stay high, fewer people can afford to buy, so more people keep renting. That steady demand for rentals can support the rent a landlord is able to charge.

How to use tomorrow's number

Do not react to the headline alone. Read whether the Fed raised, lowered, or held, and read what it hints about the months ahead. Then watch where the 30-year mortgage average moves in the days after. That number, not the Fed's own rate, is the one that lands on your monthly payment.

Every figure on this page comes straight from FRED (Federal Reserve Economic Data, Federal Reserve Bank of St. Louis) — series DFF, MORTGAGE30US. We publish these before the report lands so you can read the background while it is still quiet, then we add the actual number here the moment it is out.