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A new month brings new developments for millions of American borrowers. And if you’re a homebuyer or owner looking to refinance, that may or may not be a good thing. After mortgage interest rates declined by around a full percentage point in 2025, volatility in this space in the first half of the year erased much of that decline. With rates under 6% as recently as April, most borrowers find themselves being offered rates substantially higher right now.
With a Federal Reserve meeting looming for later in the month, however, and a not insignificant chance of a rate hike then (the CME Group’s FedWatch tool currently lists a rate hike at a 27% likelihood), borrowers still hoping to secure a cost-effective interest rate may want to consider select, strategic moves right now. While these moves won’t necessarily lead to an improvement in the mortgage rate space, they can protect borrowers from any other increases and, with a little luck, allow them to proceed with their purchase and refinancing plans.
Start by seeing which mortgage rate offers you currently qualify for here.
3 mortgage moves to make before the July Fed meeting
While the homebuying or refinancing circumstances of each borrower will differ, many can benefit from taking the following three steps now, before the Fed’s next meeting commences on July 28:
Check your credit report
While today’s mortgage interest rates may not be ideal, they’ll be even higher for borrowers with low credit scores. Check your credit report now to check for any errors or outdated information, and then promptly move to report it. Even if your credit report looks accurate, use it as a motivation to improve your score as best you can. While this will take time and an improvement won’t occur overnight, it’s critical to start this work now, so that you’re prepared to take advantage of an improved mortgage interest rate when it does inevitably materialize again, whether it be in August or at a later date.
Learn more about your current mortgage options now.
Shop for rates and lenders
While the mortgage interest rate environment may feel static, the reality is that different lenders will have different interpretations of where rates are headed. So don’t be surprised to see varying rates listed online now, some better than others. It’s critical, then, to shop for rates and lenders to see where you can find an offer that fits your budget.
Shopping around for mortgage interest rates has been shown to result in a rate that’s around half a percentage point to a full percentage point below average. And even if those are too high now, you’ll establish a baseline to compare against for the future, and you’ll learn which lenders are offering the best deals. This will leave you one step closer to acting when and if rates decline in the weeks or months ahead.
Lock a rate before it rises again
A mortgage interest rate lock can still be beneficial, even if today’s rates are far from perfect. By locking in an affordable rate when found, you’ll protect yourself from any rate hikes still ahead. Remember, too, that rates here can rise even if the Fed keeps them paused, especially if officials discuss a potential rate hike for later in the year.
Borrowers who lock in a rate now, however, won’t need to worry about that possibility and they can proceed with budgeting, homebuying or refinancing as needed. And, if rates were to fall before they were to close on their loan, they could always float their rate down at that point. In the interim, however, they’ll protect themselves from the volatility that’s still prevalent in this space.
The bottom line
Borrowers will need to be more strategic than usual in today’s unusual mortgage interest rate environment. By checking their credit report, boosting their score if applicable, shopping for rates and lenders and locking an affordable rate when found, however, they can improve their chances of borrowing success. It’s important, however, to start this work now as it will take time and patience to sort through this list. Once you do, however, you may find yourself in a better position to borrow or refinance than you were at the start of the month.