Borrowers will need to take a strategic approach in today's elevated mortgage interest rate climate.
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The mortgage interest rate environment is constantly changing, and it's doing so in noticeable ways. Case in point: Mortgage rates dropped by around a full percentage point in 2025, down from the approximate 7% they started the year at for 30-year terms. By March 2, 2026, however, the average rate on the same loan term was just 5.75%.
Not even two months later, however, that same rate was 6.62%, up by around a full percentage point on May 21 despite the Federal Reserve keeping its federal funds rate frozen during that period. And this surge could continue into the summer, giving homebuyers who had planned to purchase a home much to contemplate before taking action.
But that doesn't mean that homebuying can't still make sense and even be advantageous, especially if you're renting a home in the interim and not building equity. To better determine your next steps in this unusual climate, it helps to know some important and timely mortgage rate dos and don'ts. Below, we'll outline four specific ones for borrowers to consider now.
Start by seeing what mortgage interest rate you currently qualify for here.
Mortgage rates dos and don'ts that borrowers should know now
To improve your chances of mortgage borrowing success in today's economy, it's important to consider the merits of these four dos and don'ts now:
Do: Strongly consider a mortgage interest rate lock
A mortgage interest rate lock may not be beneficial when rate declines are pending. But that's not the environment borrowers find themselves in right now. At a minimum, then, a rate lock will protect borrowers from any adverse conditions that cause rates to rise in the future.
They could always float it down before closing, too, should rates reverse course or even refinance in the future if they don't. In the interim, however, they'll circumvent any rate hikes still ahead and allow themselves to budget with precision, knowing the exact rate they'll be buying a home with.
Learn more about your mortgage rate lock options here.
Don't: Assume a rate cut is still on the horizon
When 2026 began, an interest rate cut from the Federal Reserve, which would then cause mortgage rates to drop, seemed highly likely, even if the timeline for when it would be issued was uncertain. This June, however, borrowers should reconsider their expectations.
Not only shouldn't they assume that a rate cut is still on the horizon, but they should also consider the possibility that a rate hike is possible, especially if employment remains strong while inflation continues to rise. Remember, too, that lenders don't need to wait for a formal Fed rate hike to raise the rates they offer to borrowers. If that likelihood grows, then they may get ahead of it by raising their offers preemptively, which is another reason why a rate lock now makes sense.
Do: Shop around for mortgage rates online now
Shopping around for mortgage rates is often one of the best ways to find a below-average rate, so it's especially important to do so now, even if you're not quite ready to purchase a home. By establishing a baseline of rate offers to compare against, you can narrow down which lender you'll ultimately use. And with online marketplaces listing rates, terms, lenders, closing costs and more all in one place, it's arguably easier than ever to start reviewing your options right now.
Don't: Discount the alternative ways to secure a below-average rate
Shopping around for a mortgage rate has been shown to result in one around half a percentage point below average. But it's not the only way to secure a lower mortgage rate, so don't discount the alternative ways available to borrowers. That includes adjustable-rate mortgages (ARMs), which can lead to a lower rate than what you'd get with a conventional mortgage, though it will change in a few years, unlike the alternative.
Mortgage interest points may also be worth buying as they can lower your rate significantly, though they will come with a fee to the lender that will be paid upfront or rolled into the overall loan. Consider, too, the loan term, as shorter terms tend to come with lower rates, though that may mean larger monthly payments due to the condensed repayment timeline.
The bottom line
The mortgage interest rate environment borrowers find themselves in now may be markedly different from what was available a few months ago and substantially less advantageous than many were cautiously optimistic about at the start of the year. By following the above dos and don'ts, however, borrowers can still position themselves for homebuying success, even if it's not with the rate or approach they initially had in mind. Consider, too, speaking with lenders directly, as they may be able to help you build a tailored borrowing approach that will better help you achieve your homebuying goals now.
Edited by Angelica Leicht
