Will Fed Hikes Raise Phoenix Mortgage Rates?

PHOENIX, Sept. 15, 2026 — With the Federal Reserve set to announce its next rate decision this week, Phoenix-area mortgage lender Michael McDermott of NEXA Lending (NMLS 184065) is clarifying a point that gets lost in the headlines: a Fed move on short-term rates does not automatically move mortgage rates the same way.

The bond market, not the policy statement, is what actually sets the pace for the 30-year fixed loan most Maricopa County buyers use. McDermott’s point during Fed week is straightforward: the central bank sets the overnight rate banks charge each other, while mortgage rates move with longer-term bond yields and mortgage-backed securities.

McDermott puts the point plainly: when the Fed raises its short-term policy rate, mortgage rates do not automatically move the same way. Sometimes they improve, sometimes they do not, and the bond market — not the press release — acts as the referee for what a buyer actually pays on a 30-year fixed loan.

McDermott’s message to buyers during Fed week is that the two dials are separate. The central bank sets the overnight rate banks charge each other; mortgage rates track longer-term bond yields and mortgage-backed securities. A hike can even help, when the bond market reads it as credible discipline on inflation.

McDermott’s advice to Maricopa County shoppers — in Phoenix, Mesa, Scottsdale, Chandler, Gilbert, and Peoria — is to treat the Fed decision as context, not a pause button. He recommends locking when a contract timeline and rate comfort level line up, rather than waiting for a headline-perfect moment, and reminds buyers that advertised rates often assume points and a clean credit profile.

McDermott takes one application and one credit report and shops the options across roughly 300 lenders, picking from real quotes rather than whatever one shop happens to have on the board that morning. He serves Maricopa County buyers from Phoenix to Peoria, and he is the licensed originator for NEXA Lending.

About NEXA Lending

NEXA Lending is a nationwide mortgage lender offering purchase, refinance, and construction financing through an independent broker channel. Michael McDermott (NMLS 184065) is a 24-year mortgage professional with The McDermott Team, serving Phoenix and Maricopa County. He can be reached at themcdteam.com.