Updated October 2026
The rate cuts this page first covered have partly reversed. On September 16, 2026, the Federal Reserve raised its target rate by a quarter point to 3.75–4.00%, its first increase in about three years, and mortgage rates have climbed with it.
The short version
- The Fed cut rates from September 2024 through December 2025, reaching 3.50–3.75%.
- In September 2026 it raised the target to 3.75–4.00%, citing inflation that “remains elevated.”
- Freddie Mac’s 30-year fixed average was 7.28% on October 1, 2026, up from 6.34% a year earlier.
- On a $500,000 30-year loan, that difference is about $313 a month in principal and interest.
What it means for your project
- Run the numbers at today’s rate. Don’t budget on a cut that may not come.
- Design and permits take months. Many owners use that time to wait out rates, then finance construction when they’re ready to build.
- Density helps. More units on the same land spread the land and financing cost. That is why we test small-lot and multifamily options before a single home.
How we use it
At Cuckoo Complex in San Diego, six units share one building, with density shaped by light, air and courtyards. If you’re weighing a project against today’s rates, start with what your lot can hold. See our small-lot subdivision and multifamily work.
From our portfolio
Density shaped by light, air and courtyards.
Have a lot in mind?
Send us the address and we’ll tell you what it can hold. Book a free consultation → · Follow @ydsarch on Instagram
