Partner content from Prescott Realty Pros. Kristi Patterson, REALTOR®, can be reached at (928) 890-7023.
The Federal Reserve held its benchmark rate steady on October 28, 2026. In its latest statement, the Federal Open Market Committee kept the target range for the federal funds rate at 3-3/4 to 4 percent, by a 10–2 vote. For Prescott-area buyers and sellers, that means no new move from the Fed this month, but the Fed does not set mortgage rates. Freddie Mac’s most recent weekly survey put the average 30-year fixed rate at 7.32% for the week of October 22, 2026, and the rate you are offered depends on your credit, down payment and loan type. A licensed lender is the right person to price your loan.
Kristi Patterson, REALTOR® with Iannelli & Associates Real Estate and the agent behind Prescott Realty Pros, explains what the Fed said and what it means for a purchase or sale in Prescott, Prescott Valley or Chino Valley.
What Did the Fed Decide on October 28, 2026?
It held steady after a hike in September. The October 28, 2026 FOMC statement says the Committee “decided to maintain the target range for the federal funds rate at 3-3/4 to 4 percent.” Six weeks earlier, the September 16, 2026 FOMC statement raised that range by a quarter of a percentage point on a 12–0 vote.
- Two members, Lisa D. Cook and Beth M. Hammack, voted against the hold. Both preferred to raise the range by 1/4 percentage point.
- The Committee described economic activity as “expanding at a strong pace” and said domestic spending has been resilient.
- It said inflation “remains elevated” and restated its 2 percent inflation goal.
The next scheduled meeting is December 8–9, according to the Fed’s FOMC meeting calendar.
Does the Fed Set Mortgage Rates?
No. The federal funds rate is what banks pay one another for overnight borrowing. The Fed’s own explainer on how the Federal Reserve affects inflation and employment says changes in that rate influence other interest rates and household borrowing costs, but that the links to the wider economy are “not direct or immediate.”
- Mortgage rates move with financial markets.
- Rocket Mortgage, a lender, notes in its explainer on the October 2026 Fed statement that mortgage pricing tends to reflect what traders already expect, so a widely expected decision may already be built into rates.
- Your own rate depends on your credit score, down payment, loan type and loan term, not on the Fed headline alone.
What Are Mortgage Rates Right Now?
Freddie Mac’s Primary Mortgage Market Survey is the standard weekly benchmark. Here is what it showed for the week of October 22, 2026:
- The 30-year fixed-rate mortgage averaged 7.32%, down from 7.40% the week before. A year earlier it averaged 6.19%.
- The 15-year fixed-rate mortgage averaged 6.68%, down from 6.71% the week before. A year earlier it averaged 5.44%.
- Freddie Mac publishes new numbers on Thursdays at noon Eastern time, which is 9 a.m. in Arizona, so check the latest figure before you budget.
Those are national averages for purchase loans on owner-occupied single-family homes, with good to excellent credit and 20 percent down. The Consumer Financial Protection Bureau’s Explore Interest Rates tool shows how rate ranges shift with credit score, down payment and loan type. It also notes that fees, points, mortgage insurance and closing costs add to a loan’s cost.
What Should Prescott Home Buyers Do Now?
Plan around a monthly payment you are comfortable with, using real numbers from a lender.
- Talk with a licensed mortgage lender about pre-approval, and ask for a Loan Estimate that shows the rate, the monthly payment and the closing costs.
- Ask how a rate lock works with that lender and how long it lasts.
- Build your offer with protective deadlines. Kristi’s post on what “contingent” means when buying a home in Prescott explains the financing and inspection contingencies.
The CFPB Loan Estimate explainer walks through each page of that form, so you can compare offers from more than one lender. Two sales Kristi recently helped close in Prescott’s 86314 ZIP code, at $461,500 and $543,000, show how quickly loan amounts add up. On a loan that size, even a small difference in rate changes the monthly payment.
What Does the Fed Statement Mean for Prescott Home Sellers?
It means buyers are watching their monthly payment. With the 30-year average above 7 percent in Freddie Mac’s latest survey, a financed buyer’s budget depends on the rate a lender offers.
- Price the home from recent nearby sales rather than from national news.
- Handle repairs and disclosures early, so a financed buyer’s inspection and appraisal go smoothly.
- If a buyer asks for a credit toward closing costs, have the buyer’s lender confirm what the loan program allows before you agree.
Should You Wait for the Fed’s Next Move?
No one can promise what the Fed will do in December, and this article doesn’t try. The October statement says that “the accumulation of more information will help the Committee determine the policy stance appropriate” to bring inflation back to 2 percent.
- Base your timing on your own plans: your work, your budget, a lease end date and the home itself.
- Ask a licensed lender about the trade-offs of moving now or later.
- Treat the weekly Freddie Mac survey and the December 8–9 meeting as new information, not as a forecast.
A Closing Word From Kristi Patterson
Rates are one part of a move; the home and the contract matter just as much. If you have questions about the Fed rate decision and Prescott real estate, or you are buying or selling in the area, Kristi can help you plan an offer strategy and a realistic timeline. Call her at (928) 890-7023 or reach out through the Prescott Realty Pros contact page.
Kristi Patterson, REALTOR®, Iannelli & Associates Real Estate. Equal Housing Opportunity. This article is general information, not financial, lending or legal advice, and it does not predict interest rates. Talk with a licensed mortgage lender about your own loan options.
Featured photo: the Federal Reserve’s Eccles Building in Washington, D.C. Photo: Federal Reserve, Wikimedia Commons, public domain.
About the author
Kristi Patterson, REALTOR® (Arizona license SA698076000), moved to Prescott from Southern California in 2004 and helps buyers and sellers across Prescott, Prescott Valley, Chino Valley, Dewey-Humboldt, Paulden and Mayer. She works through Prescott Realty Pros with Iannelli & Associates Real Estate, a family-owned brokerage. Learn more on her About page.
Citations and resource links
- Board of Governors of the Federal Reserve System. “Federal Reserve Issues FOMC Statement.” Press release, September 16, 2026.
- Board of Governors of the Federal Reserve System. “Federal Reserve Issues FOMC Statement.” Press release, October 28, 2026.
- Board of Governors of the Federal Reserve System. “How Does the Federal Reserve Affect Inflation and Employment?” FAQs. Last updated July 19, 2024.
- Board of Governors of the Federal Reserve System. “Meeting Calendars and Information.” Federal Open Market Committee. n.d. Accessed October 29, 2026.
- Consumer Financial Protection Bureau. “Explore Interest Rates.” consumerfinance.gov. Last modified February 17, 2026.
- Consumer Financial Protection Bureau. “Loan Estimate Explainer.” consumerfinance.gov. Last modified October 29, 2025.
- Freddie Mac. “Mortgage Rates.” Primary Mortgage Market Survey. October 22, 2026.
- Graham, Kevin. “Federal Reserve Statement Explained – October 2026.” Rocket Mortgage. Updated October 28, 2026.
