The Fed Just Raised Rates: What It Means for New Braunfels Buyers and Sellers

Last week the Federal Reserve raised interest rates for the first time in over three years. If you're buying or selling a home in New Braunfels, Seguin, San Marcos or anywhere in Central Texas, the headlines probably have you wondering what happens next.

I'm Allen Corona, a REALTOR® with Real Broker. Here's a plain-English look at what happened, what it does and doesn't mean for mortgage rates, and how I'd think about it if I were in your shoes.

What the Fed actually did

On Wednesday, September 16, 2026, the Fed raised its benchmark rate by a quarter point to a range of 3.75% to 4%. It said inflation remains elevated, and officials pointed to higher energy prices as one factor. The Fed's own projections show one more quarter-point increase before the end of the year and no further hikes in 2027.

Does the Fed set mortgage rates?

Not directly. The Fed's rate is what banks charge each other for short-term loans. Mortgage rates track longer-term bond yields, especially the 10-year Treasury, and lenders add their own margin on top. That's why mortgage rates can move even when the Fed doesn't, and why they sometimes rise ahead of a Fed decision.

Here's where rates stand right now:

• Freddie Mac's weekly survey, released September 17, put the average 30-year fixed rate at 6.95%, up from 6.76% the week before and 6.26% a year ago.
• Daily lender averages run a little higher. One daily tracker had the 30-year fixed at about 7.09% on September 21.

To put that in perspective, on a $350,000 loan, every quarter-point change in your rate moves the monthly principal-and-interest payment by roughly $58.

What the housing numbers show

The Fed's move lands on a market that was already cooling. Here's the latest:

• Nationally: The National Association of REALTORS® reported that existing-home sales fell 2.0% in August to a 3.98 million annual pace. The median price was $429,100, up 1.6% from a year ago. Inventory stood at 4.9 months of supply, the highest in more than a decade, and homes spent a median of 31 days on the market.
• Comal County: The Four Rivers Association of REALTORS® reported 313 closed sales in August, down 3.4% from a year ago, with a median price of $427,450, up 4.5%.
• San Antonio: The San Antonio Board of REALTORS® reported just under 6 months of inventory in August, with the median home taking about 82 days to sell.
• New homes in Texas: HomesUSA.com reported that new homes averaged 109 days on the market in August, the fourth straight monthly improvement, while sales fell 3.1% from a year ago and the average price was down about 1%.

The takeaway: prices are holding up in our area, but there's more inventory and less urgency than there was a couple of years ago. That's a market where preparation and negotiation matter more than speed.

If you're buying

Don't wait for a "perfect" rate. Nobody knows exactly where rates go from here. If you find a home that fits your budget at today's payment, you can always look at refinancing if rates come down later.

Get pre-approved and price out your real payment. Rates vary by credit score, down payment and loan type. A conversation with a lender this week is worth more than any national average.

Ask about rate buydowns and builder incentives. With more inventory and longer market times, sellers and builders are often open to helping with closing costs or buying down your rate. A lower rate can be worth more to your monthly budget than a small price reduction.

Use your time. With more options on the market, you can compare homes and negotiate on repairs and terms instead of rushing into an offer.

If you're selling

Price it right from day one. In a market with more competition from other listings, homes that start too high tend to sit and then get cut. Homes priced in line with the market attract more showings and better offers.

Expect buyers to be payment-focused. Many buyers are working out exactly what a 7% rate does to their monthly budget. Condition, presentation and marketing help your home stand out.

Talk about concessions early. Offering to help with closing costs or a rate buydown can help a buyer qualify and can sometimes cost you less than a price cut.

The bottom line

A Fed rate hike makes headlines, but your decision should come down to your own numbers: your budget, your timeline, and the home you want. The market isn't frozen, and it isn't a free-for-all. It's a market where good information gives you an edge.

If you'd like help running the numbers for a purchase, or you'd like to know what your home would sell for in today's market, I'm happy to walk through it with no pressure. You can get a free home value estimate or contact me.

Sources: Federal Reserve decision of September 16, 2026, as reported by NPR; Freddie Mac Primary Mortgage Market Survey, September 17, 2026; Mortgage Research Center daily rates via Fortune, September 21, 2026; National Association of REALTORS® existing-home sales report for August 2026; Four Rivers Association of REALTORS® Comal County August 2026 market stats; San Antonio Board of REALTORS® August 2026 report as reported by TPR; HomesUSA.com Texas new homes report, September 21, 2026. Payment figures are estimates for illustration only, cover principal and interest only, and are not a loan offer or financial advice. Speak with a licensed lender about your own situation. Allen Corona, REALTOR®, Real Broker.