Ahead of the Federal Reserve’s meetings next week, mortgage lenders have already trimmed their rates — with companies like Freddie Mac bringing rates to 6.2% this week — continuing an overall steady decline for the summer.

What You Need To Know

  • The Federal Reserve is expected to cut interest rates next week

  • Mortgage lenders have already trimmed rates ahead of the Fed’s meetings Tuesday and Wednesday

  • Lenders don’t anticipate the interest rate cut to make a big difference overall

  • They say some buyers could start house shopping now, but inventory is still limited

Jeff Muth, president of Mecklenburg Mortgage, says some rates are nearing 5.5%, making the market a little more attractive for some.

“With interest rates dropping a little bit, if anything, it’s going to bring some buyers off the sideline. But there’s already not enough supply,” he said.

So, not a lot of short-term benefits.

“In order to try to unlock the housing market up, I really think that interest rates are going to have to get down to probably the 4-4.5% range, would be my guess — which would then get people to maybe list their homes,” he said. 

That’s where the potential long-term pay-off comes in. 

“I think traders are definitely expecting the Fed to do at least another 75 basis points maybe in 2025,” Muth said. “But bottom line is, you just don’t know.” 

So, if you’re on the fence, Muth says if you can afford it at this interest rate, go for it.

“I would say if you find the right house, go ahead and buy it,” he said. “Interest rates are expected to be lower in the next year, year and a half, but I mean you can always do a refinance.”

The anticipated interest rate cut from the Federal Reserve will trickle down to other loans — like interest rates on credit cards and automobile loans.

The Fed is set to meet Tuesday and Wednesday.