As of its July 28-29, 2026 meeting, the Federal Reserve announced that it is keeping the federal funds rate unchanged, at 3.5% to 3.75%. This is the fifth rate announcement of 2026. The previous four announcements, in January, March, April, and June, also left the rate unchanged. The decision came after the Federal Open Market Committee’s July meeting.
According to the Federal Reserve’s press release, the FOMC approved the statement by a 9-3 vote and decided to maintain the target range for the federal funds rate at 3.5% to 3.75%. The three dissenting votes came from Beth M. Hammack, Neel Kashkari, and Lorie K. Logan, each of whom preferred to raise the target range by a quarter percentage point at this meeting. June’s decision was unanimous at 12-0.
The FOMC statement described economic activity as expanding at a solid pace despite elevated uncertainty tied in part to the conflict in the Middle East, and described productivity growth and capital investment as strong. The statement said job gains have kept pace with the workforce and that the unemployment rate has changed little. It also stated that inflation remains elevated relative to the committee’s 2 percent goal, attributing this in part to supply shocks that have driven price increases in certain sectors, including energy.
The committee also stated that it is continuing its policy of maintaining ample reserves in the banking system. This was Chair Kevin Warsh’s second FOMC meeting as chairman, following Jerome Powell’s departure in May. As at the June meeting, the post-meeting statement was shorter than what had become standard practice.
The Federal Reserve’s 2026 Interest Rate Announcement Schedule
The Federal Open Market Committee (FOMC) meets eight times a year and announces its decision on what to do with the benchmark interest rate. The schedule for 2025 is as follows:
- January 28-29
- March 17-18
- April 28-29
- June 16-17
- July 28-29
- September 15-16
- October 27-28
- December 8-9
Read the full July 29th FOMC statement below:
The Federal Open Market Committee approved the following statement for release by a 9 – 3 vote:
The Committee decided to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4 percent, in support of the Federal Reserve’s dual mandate. The Committee is continuing its policy of maintaining ample reserves in the banking system.
Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East. Productivity growth and capital investment are strong. Job gains have kept pace with the workforce, and the unemployment rate has changed little.
Inflation remains elevated relative to the Committee’s 2 percent goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy. The Committee will deliver price stability.
Voting against the monetary policy action were Beth M. Hammack, Neel Kashkari, and Lorie K. Logan, who preferred to raise the target range for the federal funds rate by 1/4 percentage point at this meeting.
What is the Benchmark Interest Rate and What Does it Mean for Homebuyers and Homeowners?
It’s important to look at the broader economic picture when buying or selling a home. These interest rate decisions can have a direct impact on your wallet. When buying a home, most people need to borrow the required funds in the form of a mortgage. The mortgage interest rate refers to the percentage a borrower pays to a lender on the funds borrowed for the purchase. Your lender determines your interest rate based on various factors such as credit risk, market conditions, and of course, the benchmark federal funds rate.
Your mortgage rate isn’t the same as the benchmark rate, but they are connected. The federal funds rate is set by the federal government at its scheduled meetings. It is used to influence the interest rates lenders offer on other types of loans—like mortgage loans. When getting a mortgage rate, lenders take into account the benchmark rate, alongside other factors like your debt-to-income ratio and credit score.
Now that you’re more educated on interest rates and how they may impact your home purchase and investment, you could be ready to start home hunting. Your REMAX agent will be there to guide you, every step of the way.
