The Federal Reserve is set to cut interest rates again, but mortgage rates may not decrease much. Current rates already reflect expectations, hitting 6.58%, the lowest since October 2024. Rate cuts don’t directly impact mortgage rates, which are influenced by factors like bond yields and 10-year Treasury yields.

Economic data leading up to the Fed’s meeting in September could cause rate swings. Many buyers are waiting for rates to drop further, but professionals caution that market factors are already priced in. Mortgage rates are market-driven and can change quickly, making it difficult to predict future movements accurately.

Buyers now have more purchasing power due to lower rates. Waiting on the Fed might be too late as interest rate volatility is expected. Loan officers are monitoring data to predict rate changes but advise focusing on overall affordability. Timing the market can be risky, as rates can move unpredictably and quickly.

Read more at Yahoo Finance: The Fed is expected to cut rates. Don’t expect mortgage rates to follow.