You probably have been seeing some of the headlines lately that lead you to question what is in store for mortgage rates. A little while ago there was chatter that there were going to be cuts that would bring rates down. This was specific to the Federal Reserve (The Fed) and the Fed Funds Rate. Any fluctuation of the Fed Funds Rate does not directly set mortgage rates, but it does typically impact them. As of the recent meeting the Fed had, a cut was not yet made. While there are several things that go into how the Fed makes their decision to make a cut, the real question everyone has is if this means that mortgage rates will follow suit with a drop.

Mortgage Rates Should Still Drop This Year

Just because it has not yet happened does not mean that it is not going to happen at all. Jerome Powell, the Chairman of the Fed, says they still plan to make cuts this year, assuming inflation cools: “We believe that our policy rate is likely at its peak for this tightening cycle and that, if the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year.”

When this happens, patterns historically have shown that mortgage rates will likely follow. That means hope isn’t lost. As a recent release from Business Insider explains: “As inflation comes down and the Fed is able to start lowering rates, mortgage rates should go down, too. . .”

What This Means

With any rate movement it isn’t necessarily the best idea to wait for it to carry over to mortgages. Mortgage rates are very difficult to forecast what and when things will happen. There are so many factors at play and any one of those can change the projections as the economy changes. And it’s why the experts offer this advice. As Mark Fleming, Chief Economist at First American, says: “Well, mortgage rate projections are just that, projections, not promises and don’t forget how hard it is to forecast them. . . So my advice is to never try to time the market . . . If one is financially prepared and buying a home aligns with your lifestyle goals, then it could be the right time to purchase. And there’s always the refinance option if mortgage rates are lower in the future.”

So at the end of the day if you’re looking to move and trying to time the market, don’t hedge your bets on any specific time in the future. If you’re ready now, prepared and able to move then it may still be worth it to do it, especially if you can find the right home you’ve been looking for.