Should you lock a mortgage rate before the July Fed meeting? Pros and cons to consider now
Summary
The Federal Reserve will meet soon, and many homebuyers and homeowners are deciding whether to lock in current mortgage rates or wait for potentially better rates later. Mortgage rates have risen recently due to global conflicts and inflation, and rate changes after the Fed meeting could affect borrowing costs.Key Facts
- The Fed meeting begins on July 28 and is expected to keep federal funds rates unchanged for now.
- Mortgage rates recently increased, with average 30-year purchase rates at about 6.75% and refinance rates at 7.20%.
- Rates were lower earlier in 2026, with some under 6%, but those options are no longer widely available.
- Locking a mortgage rate now gives borrowers payment certainty but may mean paying more than in the past.
- Waiting could risk higher rates later, as there is a 75% chance the Fed will raise interest rates in September.
- Refinancing later to a better rate is possible but usually involves additional costs.
- Borrowers must weigh the pros and cons of locking rates now versus waiting for potentially better conditions.
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