Should you lock a mortgage rate before the July Fed meeting? Pros and cons to consider now

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After some borrowers saw some relief in this space in 2025, mortgage rates rose sharply this spring following a spike in overseas conflicts and a rising inflation rate. And that came even with the Fed holding rates steady. Should the bank discuss a possible rate hike for later in 2026 or even simply keep higher rates on pause for longer, mortgage rates could rise as a result.

This leads to inevitable questions for borrowers. Should they consider locking in one of today's imperfect mortgage rates now? Or should they delay their buying and refinancing plans even further to wait for a better rate that may not materialize any time soon? The answers aren't clear, as there are pros and cons to locking in a mortgage rate right now, before the July Fed meeting commences. Below, we'll break down four specific ones to evaluate before making a decision.

Start by seeing how low of a mortgage rate you could lock in here.

A mortgage rate lock before the Fed meeting kicks off on July 28 could be an advantageous move to make for some borrowers but not for others. Here are the timely pros and cons associated with a rate lock to consider right now:

The average 30-year mortgage purchase rate is 6.75% according to Zillow and it is 7.20% for a 30-year refinance term. Those are not ideal rates, particularly compared to what was available in the recent past.

But by locking one in now, you'll be able to budget with certainty knowing exactly what your payments will look like – not what they could be if and when rates change again. This will allow you to proceed with your home buying or refinancing plans as intended, even if the costs here are more inflated than you would prefer.

It wasn't that long ago that you had multiple mortgage rate options under 6% to choose from. In December, for example, you may have been able to find a 30-year mortgage purchase rate at just 5.99%. Or, at the same time, you may have been able to refinance into a 15-year term with a rate of 5.56%.

Those offers are long gone now, however, making a rate lock your least bad option. That said, a lock could still be advantageous if you tack on mortgage points, which will help you secure a below-average rate, even if it's not quite as low as what you would have secured without that fee in late 2025.

The Fed may keep interest rates frozen again this month, but there's no guarantee that they will maintain that position into the fall. The chances of an interest rate hike in Septe