Mortgage rates tend to move based on a mix of economic indicators, inflation trends, and investor expectations. Right now, a few key things are keeping rates elevated:
Inflation is still a factor. Although it's cooled from the highs we saw in previous years, it hasn’t dropped enough for the Federal Reserve to start cutting interest rates.
Global uncertainty. Trade policies and political concerns (including possible tariffs) have made investors cautious. That tends to push long-term rates higher, including mortgage rates.
The Federal Reserve is holding steady. The Fed chose not to raise rates this month—but they’re also not ready to lower them. This "wait and see" stance keeps mortgage rates in a holding pattern.
It’s possible, but probably not right away. Many analysts expect mortgage rates to stay in the current range through the end of the year, with a chance of small improvements if inflation continues to ease.
If you're hoping for a dramatic drop, keep in mind that market shifts tend to happen gradually. That said, even small changes can make a meaningful difference in monthly payments and long-term interest costs.
Here are a few tips if you're exploring financing in today's market:
Talk through your options. In many cases, we can explore creative strategies like temporary buydowns, adjustable-rate mortgages, or second mortgage solutions to improve affordability.
Get pre-approved early. With rates fluctuating, it’s smart to know your numbers before shopping. A pre-approval gives you clarity—and an edge when you make an offer.
Think long-term. If rates drop in the future, you may be able to refinance. Focus on getting the home you want now, and know that you can adapt your financing strategy over time.
Every borrower’s situation is unique—and I’m here to help you make sense of the market and your options. Whether you’re just starting to explore or actively looking at homes, feel free to reach out.
Let’s find the path that works best for you.
