So, you might have heard the buzz about potential cuts in mortgage rates, and you’re probably wondering what’s the deal with that. Well, it all ties back to the Federal Reserve (the Fed) and their Fed Funds Rate. While a cut in this rate doesn’t directly dictate mortgage rates, it can influence them. However, in the latest Fed meeting, there wasn’t a cut — at least not yet.

Now, the Fed’s decision-making process is pretty intricate, but you don’t need to get tangled up in all those details. What you really want to know is: does this mean mortgage rates won’t budge? Here’s the scoop.

Don’t Lose Hope: Mortgage Rates Could Still Drop

Even though we haven’t seen it happen yet, there’s still hope. According to Jerome Powell, the big cheese at the Fed, they’re planning on making cuts this year if inflation calms down. Powell mentioned, “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.” Translation? If history repeats itself, mortgage rates might follow suit.

What Does This Mean for You?

But waiting around for rates to drop might not be your best move. Predicting mortgage rates is like trying to predict the weather – unpredictable. So, here’s the lowdown from the experts: don’t try to time the market. Mark Fleming, Chief Economist at First American, wisely points out, “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.”

In a nutshell, if you’re ready to make a move, don’t wait around for the perfect moment. If you find your dream home and it aligns with your goals, seize the opportunity.

The Bottom Line

If you’re eyeing that dream home, it’s a good idea to stay in the loop on mortgage rates. Get in touch with someone who can keep you updated and help you navigate this ever-changing landscape.