By Benjamin Finnerty (S), REALTOR® (RS-83812) with Keller Williams Realty Maui · Kīhei, Maui · 808-481-9748

Quick Answer: On September 16, 2026, the Federal Reserve raised its benchmark rate by 0.25 percentage point to a target range of 3.75%–4.00%. By September 24, 2026, Freddie Mac’s average 30-year fixed mortgage rate was 7.03%, up from 6.30% a year earlier. Because many Maui purchases exceed the county’s $1,299,500 conforming loan limit, rate moves hit island buyers especially hard.

I’m Benjamin Finnerty, a REALTOR® in Kīhei with Keller Williams Realty Maui, and the first number almost every buyer asks me about is the monthly payment. If you’ve been waiting for mortgage rates to fall before buying a condo in Kīhei, a home Upcountry or an investment property anywhere on the island, September brought the opposite. Here’s what actually changed, why it matters more on Maui than on the mainland, and how I’d think about it before writing an offer.

What Did the Fed Do on September 16, 2026?

The Fed raised rates for the first time in this cycle. After holding the federal funds rate steady at 3.50%–3.75% through the summer, the Federal Open Market Committee voted 12-0 on September 16 to lift the target range to 3.75%–4.00%.

In its statement, the Committee said inflation “remains elevated” and that the increase supports “a timelier return to the Committee’s 2 percent goal.” It also noted that “economic activity is expanding at a solid pace” and that the unemployment rate “has changed little.”

The inflation data leading into the meeting explains the decision. The August Consumer Price Index, released September 11, showed prices up 3.4% from a year earlier, unchanged from July. Core CPI, which strips out food and energy, came in at 2.4% annually, but gasoline prices rose sharply during the month and overall inflation is still well above the Fed’s 2% target.

What Are Mortgage Rates Right Now for Maui Buyers?

As of September 24, 2026, the average 30-year fixed mortgage rate was 7.03% and the 15-year fixed averaged 6.42%, according to Freddie Mac’s Primary Mortgage Market Survey. Mortgage rates don’t track the Fed’s rate one-for-one, but they tend to move in the same direction when the Fed signals concern about inflation.

Freddie Mac survey date	30-year fixed	15-year fixed
September 24, 2026	7.03%	6.42%
One week earlier	6.95%	6.26%
One year earlier	6.30%	5.49%

Freddie Mac Chief Economist Sam Khater noted that “the housing market remains supported by a solid labor market and an economy that is growing at a healthy rate.” I think that context matters: higher rates are arriving alongside a relatively strong economy, not a downturn.

Why Do Higher Mortgage Rates Hit Maui Harder?

Because a large share of Maui purchases need jumbo loans. The Federal Housing Finance Agency set Maui County’s 2026 conforming loan limit for a single-family home at $1,299,500, tied for the highest in the nation, compared with an $832,750 baseline for most of the country.

Loans at or below that limit can be purchased by Fannie Mae and Freddie Mac, which generally means broader loan options. Above it, you’re in jumbo territory, where lenders set their own rates and typically require larger down payments, more cash reserves and more documentation.

With Maui’s countywide median single-family price at $1,200,000 in August 2026, according to the REALTORS® Association of Maui, a meaningful share of home purchases, especially in Wailea, Kapalua and much of the oceanfront market, end up at or above the conforming limit once you factor in the loan amount a buyer actually needs.

Are Maui Home Prices Falling While Rates Rise?

In many segments, yes. As of August 2026, the countywide condo median was $564,950, down 13.1% from a year earlier, and the single-family median was down 7.9%, according to the REALTORS® Association of Maui.

Rates and prices don’t always move together. So while borrowing costs rose in September, purchase prices in many parts of the market had already softened. That’s why the right move depends on your specific numbers, not on the headline rate alone. For the full breakdown, see my post on Maui’s August 2026 sales numbers and what lower prices mean for buyers.

What Should You Do If You’re Buying on Maui This Fall?

Start with a real payment, not a guess. These are the steps I walk buyers through:

• Get pre-approved with a lender who knows Hawaiʻi jumbo loans before you start touring, so you know your real payment at today’s rates.
• Ask about a rate lock once you’re under contract, especially while the Fed is signaling concern about inflation.
• Compare loan structures. A 15-year fixed, an adjustable-rate mortgage or a seller-paid rate buydown can each change your monthly payment meaningfully. Ask your lender to run them side by side.
• Build in a cushion. Budget your payment with some margin so a small rate move between now and closing doesn’t break the deal.

If you’re looking at condos, financing rules beyond the rate matter too. I cover one of the big ones in the condo financing rule change Maui buyers should know about, and I run the payment math in the real monthly cost of Maui’s median home and condo.

My Take: What I’m Telling Buyers Right Now

Nobody can reliably predict where rates go next, and I won’t pretend to. What I can do is look at the numbers that exist today: a 30-year rate of 7.03% as of September 24, 2026, alongside a condo median that was down 13.1% year over year in August 2026. Higher borrowing costs and softer prices are pulling in opposite directions, and which one matters more depends on the property and the loan.

The dividing line I pay the most attention to on Maui is the $1,299,500 conforming limit. A buyer whose loan lands just under it may have very different options than one whose loan lands just over it. Before you fall for a specific home, I’d have a lender price both scenarios so you know where your comfort zone really is.

My practical advice: buy a property whose payment works for you at today’s rates, treat any future rate drop as a possible refinance opportunity rather than a plan, and keep enough cushion that a small move before closing doesn’t derail you.

This is general information, not lending or financial advice. Please confirm your situation with a licensed mortgage lender.

Frequently Asked Questions

Did the Fed raise rates in September 2026?

Yes. On September 16, 2026, the Fed raised the federal funds target range by 0.25 point to 3.75%–4.00% in a unanimous 12-0 vote.

What is the average 30-year mortgage rate right now?

Freddie Mac reported an average of 7.03% for the 30-year fixed on September 24, 2026. The 15-year fixed averaged 6.42%.

What is the conforming loan limit in Maui County for 2026?

$1,299,500 for a single-family home. Loans above that amount are generally jumbo loans, which typically carry stricter down payment, reserve and documentation requirements.

Should I wait for rates to come down before buying on Maui?

Nobody can reliably predict rate moves. What you can control is buying a property whose payment works for you at today’s rates, with a plan to refinance if rates fall later.

Ask Benjamin

If you’d like to see what today’s rates mean for a specific Maui property, or compare a conforming loan against a jumbo on a home you’re considering, I’m happy to walk through the numbers with you and connect you with lenders who know this market. I’m Benjamin Finnerty, and you can call or text me at 808-481-9748 or email benjamin@the808team.com. No pressure, just a straight answer about where things stand.

Sources: Federal Reserve FOMC statement (September 16, 2026); Freddie Mac Primary Mortgage Market Survey (September 24, 2026); U.S. Bureau of Labor Statistics CPI (August 2026); FHFA 2026 conforming loan limits; REALTORS® Association of Maui August 2026 statistics via Maui Now.