Recent news might have you curious about the future direction of mortgage rates. You might have previously heard about anticipated cuts this year that were expected to lower rates. These cuts pertain to the actions of the Federal Reserve (the Fed) and their management of the Fed Funds Rate. While reducing the Fed Funds Rate doesn’t directly dictate mortgage rates, it often has an impact on them. However, at the recent Fed meeting, no cut occurred, at least not yet.

The Fed’s decision was influenced by various intricate factors, but you don’t need to get caught up in those details. What you’re likely interested in is whether mortgage rates will indeed decrease. Here’s what you should know:

Although the rate cut hasn’t materialized yet, it doesn’t mean it won’t happen. Even Jerome Powell, the Fed Chairman, indicates that they still intend to implement cuts this year, provided inflation eases:

“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.”

Historically, when the Fed lowers rates, mortgage rates tend to follow suit. So, there’s still optimism. As noted in a recent Business Insider article:

“As inflation comes down and the Fed is able to start lowering rates, mortgage rates should go down, too…”

However, waiting for this to happen might not be the best strategy. Predicting mortgage rates is notoriously difficult due to numerous influencing factors that can change with economic shifts. This is why experts advise against trying to time the market. Mark Fleming, Chief Economist at First American, advises:

“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 essence, if you’re considering a move and are attempting to predict the market, it might be best to reconsider. If you’re prepared and motivated to move, it could still be worthwhile, especially if you find the ideal home.