How to Prepare for Lower Mortgage Interest Rates: Expert Strategies
How to Prepare for Lower Mortgage Interest Rates
Summer is traditionally home-buying season, but a Gallup poll released this past May found that 76% of Americans said it was a bad time to make a purchase. High mortgage interest rates and high home prices made the market unattractive for would-be owners. There’s some good news on the horizon for those hoping to get a rung on the property ladder, though.
Anticipation of Rate Cuts
Fall may bring more than just a dip in temperature. Slowing inflation has the Federal Reserve eyeing a rate cut at its September meeting. While the Fed doesn’t control mortgage rates, a reduction in the overnight rate at which banks borrow may drive down home loan costs.
Preparing for Lower Rates
Anticipation of an upcoming rate cut has already pushed rates to their lowest levels since April 2023, but most experts believe there’s still more room to fall. If that’s the case, borrowers should start preparing now so they’re ready to act.
- Consider whether to act before a rate drop: With rate cuts likely imminent, it may seem crazy to move forward on a home purchase before that happens. However, there’s an argument to be made that this counterintuitive move could be the right one.
Start by seeing how low of a mortgage interest rate you could secure here now.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.