3 mortgage moves to make before the July Fed meeting

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A new month brings new developments for millions of American borrowers. And if you're a homebuyer or owner looking to refinance, that may or may not be a good thing. After mortgage interest rates declined by around a full percentage point in 2025, volatility in this space in the first half of the year erased much of that decline. With rates under 6% as recently as April, most borrowers find themselves being offered rates substantially higher right now.

With a Federal Reserve meeting looming for later in the month, however, and a not insignificant chance of a rate hike then (the CME Group's FedWatch tool currently lists a rate hike at a 27% likelihood), borrowers still hoping to secure a cost-effective interest rate may want to consider select, strategic moves right now. While these moves won't necessarily lead to an improvement in the mortgage rate space, they can protect borrowers from any other increases and, with a little luck, allow them to proceed with their purchase and refinancing plans.

Start by seeing which mortgage rate offers you currently qualify for here.

While the homebuying or refinancing circumstances of each borrower will differ, many can benefit from taking the following three steps now, before the Fed's next meeting commences on July 28:

While today's mortgage interest rates may not be ideal, they'll be even higher for borrowers with low credit scores. Check your credit report now to check for any errors or outdated information, and then promptly move to report it. Even if your credit report looks accurate, use it as a motivation to improve your score as best you can. While this will take time and an improvement won't occur overnight, it's critical to start this work now, so that you're prepared to take advantage of an improved mortgage interest rate when it does inevitably materialize again, whether it be in August or at a later date.

While the mortgage interest rate environment may feel static, the reality is that different lenders will have different interpretations of where rates are headed. So don't be surprised to see varying rates listed online now, some better than others. It's critical, then, to shop for rates and lenders to see where you can find an offer that fits your budget.

Shopping around for mortgage interest rates has been shown to result in a rate that's around half a percentage point to a full percentage point below average. And even if those are too high now, you'll establish a basel