For homebuyers and owners looking to refinance, recent developments in mortgage interest rates are significant. Though rates fell by around a percentage point in 2025, instability has erased much of the decline. Rates were below 6% in April but are noticeably higher now.

With a Federal Reserve meeting on the horizon and a 27% likelihood of a rate hike according to the CME Group’s FedWatch tool, borrowers eager for favorable rates should act strategically.

Three Mortgage Moves Prior to the Fed Meeting:

1. Check Your Credit Report

Current rates might not be ideal, but they worsen with low credit scores. Examine your credit report for errors or outdated info and report any discrepancies. Use your report as motivation to enhance your score. It demands time, but starting promptly prepares you for better rates when they eventually improve.

2. Shop for Rates and Lenders

The mortgage rate landscape varies among lenders. Different interpretations impact the rates offered. Shopping for rates may yield a rate half to one percentage point below average. Even if rates seem high now, establish a comparison and learn which lenders present optimal deals. This positions you to act should rates drop soon.

3. Lock a Rate Before it Rises Again

Though current rates may be imperfect, locking an affordable rate secures protection against possible hikes. Rates might increase even if the Fed maintains them due to discussions on future hikes. A rate lock allows borrowers to budget confidently. Should rates fall before loan closure, consider floating down the rate.

The Bottom Line

Today’s mortgage rate environment requires borrowers to be more strategic. By reviewing credit reports, enhancing scores, exploring rates, and locking favorable rates, borrowers increase their chances of success. Begin these efforts now, as patience is required to navigate the process, leading to improved borrowing or refinancing prospects.