Falling Mortgage Rates: What Buyers Should Do Right Now

After years of rising rates and limited affordability, mortgage interest rates are finally heading in a different direction. According to new data from Freddie Mac, the average rate on a 30-year mortgage has dropped to 6.67 percent, marking five straight weeks of decline and a drop of more than 20 basis points since late May. The trend is more than a blip, and it has many homebuyers wondering if now is the time to act.

While the Federal Reserve is not expected to cut interest rates during its July meeting, many economists believe a rate reduction is likely at the Fed's next meeting in September. Market forecasts currently place the odds of a rate cut at around 70 percent. Historically, mortgage rates have responded positively to changes in the Fed's benchmark rate, and lenders may even move ahead of the central bank by lowering their offers in anticipation. That means the recent dip in rates may be just the beginning, making now a smart time for buyers to prepare.

If you're considering buying a home in the near future, this shift could work in your favor — but only if you're ready. The first step is to check your credit report. Since the rates you're offered are influenced heavily by your credit score, knowing where you stand is essential. Pull your credit report and review it carefully for errors or areas that could be improved. Small changes now could increase your score and result in a lower mortgage rate later.

Next, start researching local real estate agents. Having a knowledgeable and experienced agent can make a major difference, especially as lower rates may drive more competition into the market. Look for someone who knows your desired neighborhood and price range well. Ask friends or family for recommendations, read reviews, and take your time finding someone who feels like the right fit.

Finally, get pre-approved for a mortgage. Even if you're not quite ready to buy, a pre-approval will give you a clearer sense of your borrowing power and help you act quickly when the right property comes along. It also shows sellers you're serious — something that can give you an edge in a competitive market. Many lenders offer pre-approvals online at no cost, so it's worth taking this step even as you're still exploring your options.

While no one can predict exactly what mortgage rates will do next, the recent trend points to a window of opportunity. By preparing now — strengthening your credit, finding the right agent, and securing pre-approval — you'll be in a strong position to take advantage of better rates and increased affordability in the coming months.

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