Why Mortgage Rates Could Drop Soon — and How Buyers Can Get Ahead
If you’ve been holding off on buying a home because of high mortgage rates, here’s some good news: Things may start shifting in your favor as early as this summer.
1. The Fed is Hinting at Rate Cuts
Fed Governor Christopher Waller — a top decision-maker — recently said that if inflation keeps cooling and the job market holds steady, he’d support lowering rates later this year. This would be a “good news” rate cut, meaning rates would drop because the economy is on solid footing — not because it’s struggling.
2. A Little-Known Rule Change Could Kick In by July
There’s a 2008-era banking rule called the Supplemental Leverage Ratio (SLR) that discourages banks from buying government debt. But that may change as soon as July. If it does, banks will be free to buy U.S. Treasuries in bulk — and when that happens, interest rates tend to fall, including mortgage rates.
Some experts are calling this “bank-led quantitative easing” — a technical way of saying more money flows into the system, and borrowing gets cheaper.
What This Means for You
- Mortgage rates could drop in Q4 (fall/winter)
- Lower rates = lower payments or more buying power
- More buyers will re-enter the market as soon as rates fall
What You Can Do Now
Don’t wait for rates to drop to get ready — because when they do, it’ll happen fast and competition will spike.
- Get pre-approved now
- Talk strategy with your lender and agent
- Be ready to move when the window opens
If you’re thinking about buying this year, now’s the time to get your plan in place. I’d love to help you get prepared.
~Austin Berger
