Mortgage rate dos and don'ts to know this September

Mortgage interest rates have been on a slow but steady decline for much of 2025. sakchai vongsasiripat/Getty Images

The Federal Reserve is meeting this week for the first time since July and, for the first time since December 2024, an interest rate cut is once again expected.

That's big news for homebuyers who have mostly been on the sidelines in recent years thanks to a surge in mortgage rates. But that trend has reversed itself in recent weeks, as mortgage rates declined consistently over the summer and fell to 11-month and nearly 1-year lows, respectively, in September. A formal rate cut, then, could lead to further mortgage rate reductions.

Against this backdrop, and considering that the mortgage rate climate is volatile and hard to predict, homebuyers should be well-informed and strategic in their approach. That extends to understanding and implementing some timely mortgage rate dos and don'ts this September. Below, we'll examine four to know right now.

Start by seeing how low your current mortgage rate offers are here.

Mortgage rate dos and don'ts to know this September

Here are four timely mortgage rate dos and don'ts buyers should know this month, with rate changes looming:

Do: Lock in a rate that you can afford

The average mortgage rate on a 30-year mortgage declined last week to 6.35%. While that's far from the 3% range (or lower) that buyers could have secured in the early part of the decade, it can still be worth locking in now if it meets your budget. Remember that mortgage rates plunged on the Fed news last September and then rose in the months that followed, starting out 2025 at over 7% again. So, if a new rate offer meets your budget now, lock it in. You can always refinance in the future and, in the interim, you won't have to worry about market changes that could cause rates to spike again.

Compare your current mortgage rate offers online to learn more.

Don't: Assume rates will fall again soon

As noted above, recent mortgage rate activity shows that simply assuming rates will continue to fall could be a costly mistake. Rates here are still volatile and dependent on a series of factors besides just the Fed (the 10-year Treasury yield also plays a major role). Not only can waiting for rates to fall prove to be a costly mistake, but it also could mean missing out on your dream homebuying opportunity, as rates and listings that you prefer don't always align perfectly. Be careful and realistic, then, with your ultimate approach.

Do: Shop around for rates and lenders

It's always important to shop around for rates and lenders to determine which is offering the most cost-effective options. But it's especially important to do now, as lenders will have different reactions to Fed rate cuts and market changes. Some may even reduce rates preemptively, meaning you'll see little difference in the days following a rate cut. Others, however, may only reduce their offers slightly or by a negligible amount after rates are reduced. Be diligent in your approach and carefully shop for rates, lenders and closing costs to accurately determine which is most affordable.

Don't: Forget to explore all your options

While rates on traditional mortgage loans are on the decline, don't forget to explore all of your options, some of which can secure you an even lower rate than what you see listed online. That may mean pursuing an adjustable-rate mortgage, which can come with a rate even lower than average ones right now, and it may mean purchasing mortgage points, which serve as a fee to the lender for offering you a lower rate. And, in some instances, it may even require combining both approaches. This may take more time, effort and close consultation with a lender, but the end result could be especially valuable.

The bottom line

This September and, potentially, the months that follow, could be the time for many homebuyers to make an offer on a home. By understanding these four critical (and timely) dos and don'ts, they can take an informed and judicious approach, setting themselves up for long-term financial success, regardless of what happens in the mortgage rate climate in the long term.