By Matt Richardson
Copyright cbsnews
The trend is an unmistakable one: Mortgage interest rates are consistently declining again.After rising to their highest level in decades just two years ago, mortgage rates have been on a slow but gradual decline for much of 2025. And after falling for five consecutive weeks earlier this summer, the trend continued in September as rates here fell to an 11-month low and, then, to their lowest point in nearly a year. Those drops could continue, too, giving homebuyers reason to re-enter an improved market.But could they drop again as soon as this week? With the first Federal Reserve meeting since July set to occur on September 16 and September 17, and, with it, a presumed rate cut, they may. There’s more to consider, however, than just the Fed’s actions. Below, we’ll detail what buyers hoping for another mortgage rate drop should expect this week.Start by seeing how low your current mortgage rate offers are here.Will mortgage interest rates drop again this week?The answer to this question depends on where you look. Average mortgage rates compiled by FreddieMac, which surveys lenders on the rates they’re offering, may be a bit lower than the 6.35% rate on a 30-year mortgage term that was registered last week. But rates listed on individual lender websites and online marketplaces that combine multiple rate offerings in one location may be even lower. That’s largely because lenders don’t need to wait for the Fed to take formal rate-cutting measures to reduce the rates they offer to buyers. To remain competitive, they may reduce rates in advance of the Fed. And with a rate cut this week listed at a near certainty by the CME Group’s FedWatch tool, lenders can feel comfortable making that change preemptively.That noted, there is an outstanding question regarding how substantial this week’s presumed rate cut will be. While most expect just a 25-basis-point reduction, a larger rate cut of 50 basis points is also possible, particularly following the disappointing unemployment news released earlier this month. And it’s important to note that when the Fed reduced rates by that much last September, mortgage interest rates plunged to a two-year low before the announcement was official. So it behooves buyers to monitor the market closely this week, as rates can continue to fall, perhaps even more significantly than initially anticipated, and it may be that the drop won’t be so neatly tied to a formal Fed announcement.Overall, though, the trends here are hard to predict. Mortgage interest rates were averaging just 6.15% last September, and they were comfortably back over 7% by January. In other words, even if rates continue to drop this week, it doesn’t mean that they’ll stay that low for particularly long. Be ready to take advantage, then, when they do.Compare your current mortgage rate offers here to learn more.Don’t forget the credit score impactIt’s critical to remember that many of the mortgage rates you do see listed on lender websites and in your local bank branch are reserved for those borrowers with good to excellent credit scores and clean credit histories. So, if you don’t have both, it’s unlikely that you’ll be eligible for the lower rates offered. It’s worth taking the time, then, to pull your credit report so that you can see what lenders will see should you formally apply for a loan. In particular, look for any inaccuracies or outdated or incomplete information that could be dragging your score lower and proceed to dispute it to improve your credit standing.The bottom lineThe mortgage rate decline pattern is likely to continue this week, perhaps by a sizable degree if the Fed takes more aggressive measures. So it pays to shop around to find the lowest rates possible. But that will require some effort on behalf of the buyer, as well as strategic timing and an above-average credit score. Still, with mortgage rates finally moving back in the direction that benefits buyers, that extra work could well be worth it.
