Don’t Miss Your Shot: Prepare Now for a Potential Federal Reserve Rate Drop in September

If you’ve been waiting for the perfect time to buy a home, the opportunity could be just around the corner. The Federal Reserve is widely expected to announce a rate drop in September—but here’s the catch: mortgage interest rates often start dropping in anticipation of a Fed cut, not after.

That means if you wait until September to act, you might already have missed the lowest rates.

What This Could Mean for Your Wallet

On a $500,000 conventional loan, even a small rate reduction can create big savings:

• 0.25% rate drop = about $80/month in savings

• 0.50% rate drop = about $160/month in savings

Over a 30-year loan, that’s tens of thousands of dollars in potential savings—if you’re ready to move quickly.

Why Acting Now Matters

When a Fed rate cut is expected, lenders often adjust rates before the official announcement. Buyers who start their search or get pre-approved early are in the best position to capture those lower rates before the rest of the market catches on.

If you wait until after the September announcement:

• Rates could already be climbing back up

• Competition for homes will likely increase

Get Pre-Approved Before the Rush

By getting pre-approved now, you:

• Lock in a great rate early if they start dropping in August

• Know exactly what you can afford before you shop

• Present a strong offer with proof you’re ready to close

Remember: The early bird gets the lower rate—and waiting until September may be too late.

 Example Savings: Based on a $500,000 conventional loan amount. Savings will vary by loan type, credit profile, and market conditions. All loans are subject to credit approval.