Are annuity rates going down? Not as of October 13, 2026: the Fed raised rates on September 16 and its minutes point to one more hike by year end. That keeps multiyear guaranteed annuity (MYGA) rates near their highest levels in years.

What did the Fed do in September 2026?

The Federal Open Market Committee voted 12 to 0 to raise the federal funds target range a quarter point to 3.75 to 4.00 percent. It was the Fed’s first hike since July 2023.

The minutes of the September FOMC meeting, released October 7, say most officials see another increase as “likely” appropriate by year end. The Fed’s September economic projections show how the 18 officials split on the rest of 2026.

  • One more hike: 12 officials.
  • Two more hikes: 4 officials.
  • No more hikes: 2 officials.
  • Inflation outlook: the median forecast for 2026 PCE inflation is 3.7 percent, well above the Fed’s 2 percent goal.

What could keep the Fed from hiking again?

The job market is the main counterweight. The September jobs report showed employers added just 29,000 jobs, and the unemployment rate was 4.2 percent.

Forecasters do not expect the Fed to move right away. PNC Economics expects the Fed to hold on October 28, then raise rates again in mid-December and mid-March. The same note says the minutes tie the higher inflation to core prices and strong AI-related demand, even as the effect of tariffs faded.

What dates matter for annuity rates this fall?

Three dates are on the calendar for anyone shopping for a fixed annuity.

  • October 14, 2026: the September Consumer Price Index comes out. August CPI was up 3.4 percent from a year earlier. That release set the 2027 Social Security COLA at 3.6 percent.
  • October 28, 2026: the Fed announces its next rate decision.
  • December 9, 2026: the Fed’s last decision of the year, with new projections.

Does a Fed hike raise MYGA rates?

Not directly. The Fed sets an overnight rate, while insurers price MYGAs off the bonds they buy, which mature over 5 to 10 years.

That is why the 10-year Treasury yield matters more than any single Fed vote. When those yields rise, new MYGA rates tend to follow a few weeks later as carriers reprice.

The 10-year yield reached its highest level since 2002 in October. I cover that move in my post on MYGA rates and Treasury yields.

For the sales side of the story, see why annuity sales hit a first-half record in 2026.

Should I buy an annuity now or wait for a higher rate?

I can’t tell you what to do with your money, and nobody can guarantee where rates go. What I can do is put a number on waiting, using a simple example.

  • The possible gain: on $100,000, a 5-year MYGA rate that is 0.25 percentage point higher earns about $1,250 more over the term.
  • The cost of waiting: parking that money for 3 months in an account paying 1 to 2 points less gives up about $250 to $500.
  • The math is simplified: it uses simple interest, and compounding would add a little to both sides.
  • The catch: the higher rate may never show up, because bond yields can already reflect an expected hike.

Some buyers avoid betting on one date.

  1. Split the purchase. Lock part of the money now and the rest after the Fed meets.
  2. Ladder the terms. Spread money across 3, 5 and 7 year MYGAs so part comes due sooner.
  3. Go shorter now. A shorter term gives up some yield but lets you reprice sooner.

When a term comes due, here is what to do when your annuity surrender period ends. You can also compare current MYGA rates by term and carrier. For now, the answer to whether annuity rates are going down is no, and the Fed’s own projections point the other way.

Frequently Asked Questions

Will annuity rates go down after the October 2026 Fed meeting?

It is unlikely in the near term, since most Fed officials expect one more hike in 2026 and none of them projected a cut.

Does the Fed set annuity rates directly?

No. Insurers set MYGA rates mainly from what they earn on bonds of a similar length, which the Fed influences only indirectly.

Is it smart to wait for a better annuity rate?

Waiting only pays if rates actually rise by more than the interest you give up in the meantime.

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