A new month brings changes for many American borrowers. If you’re a homebuyer or looking to refinance, there’s important information to consider. After mortgage rates fell by about one percentage point in 2025, instability this year has reversed much of that decline. Rates, under 6% as recently as April, are now noticeably higher.
The Federal Reserve is meeting soon. The CME Group’s FedWatch tool estimates a 27% chance of a rate increase. Borrowers aiming for advantageous rates should consider strategic actions. While these steps won’t guarantee better rates, they may shield you from further hikes.
Three Mortgage Steps to Consider
Here’s what borrowers might do before the Fed’s meeting on July 28:
1. Review Your Credit Report
Current rates aren’t ideal, but they’re worse for those with low credit scores. Check your credit report now for errors or outdated data and report issues promptly. If your report is accurate, use it to motivate credit score improvement. This won’t happen overnight, but starting now prepares you for future rate opportunities, possibly in August or later.
2. Shop for Rates and Lenders
The mortgage rate environment feels static, yet lenders differ in rate forecasts. Expect varied rates online, with some more competitive. Shopping around could find you rates half a point to a full point lower than average. While those could still be high now, you establish a benchmark for future comparisons and find out which lenders offer the best deals, helping prepare you for action if rates decrease.
3. Lock a Rate Before It Rises
Despite imperfect current rates, a rate lock can provide security against potential increases. Locking a good rate shields you from hikes, even if the Fed maintains current rates but hints at future raises. Locked rates keep you safe from rate changes, allowing you to focus on budgeting, buying, or refinancing. If rates drop before your loan closes, you might adjust your rate down.
Conclusion
In today’s volatile mortgage interest rate market, borrowers must be strategic. By reviewing credit reports, enhancing scores, shopping rates and lenders, and locking beneficial rates, borrowers can better their borrowing prospects. Start now; this process requires time and patience. With these steps, you may find yourself in a favorable borrowing or refinancing position by month’s end.
Edited by Angelica Leicht
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