With the first Federal Reserve meeting since January just days away, homebuyers find themselves stuck in a holding pattern. There was no interest rate cut when the bank met previously this year, but there were three consecutive ones when the central bank met in the final four months of 2025. That, in turn, helped drive mortgage rates downward, so much so that buyers here were able to find rates in the low 5% range in recent weeks. But recent geopolitical tensions may have changed that trajectory, and a disappointing unemployment report last week and a different report this week showing inflation stuck haven’t helped. Case in point: A report on Thursday showed the average mortgage interest rate on a 30-year term at 6.00% after being as low as 5.75% in the weeks prior.Against this backdrop, then, homebuyers need to know which steps are worth taking now, before the Fed meeting on March 17 and March 18. And it’s equally as important to know which moves to avoid making, too. Below, we’ll detail three of the latter mistakes buyers should carefully circumvent to improve their chances of homebuying success in today’s unpredictable economic environment.Start by seeing how low your current mortgage rate offers are here.3 things homebuyers should avoid before the March Fed meetingThis is an uncertain time in the homebuying climate, but it can still be advantageous for homeowners if they’re strategic in their approach and if they specifically avoid doing these three things before the Fed’s March meeting:Assume rates will stay steady if no cut is issuedA pause in the Fed’s rate cut campaign, as is widely expected next week, can result in a false sense of security. Interest rates aren’t rising, after all, right? But assuming that mortgage rates will stay steady if no cut is issued is a mistake worth avoiding. Remember, an interest rate pause is largely due to market uncertainty, and that can have an adverse effect on mortgage interest rates, even causing them to rise slightly. Plus, the market accounts for more than just Fed actions, as the comments made by officials after the meeting has concluded also have the potential to move rates upward or downward. Considering that mortgage lenders don’t need to wait for formal Fed action to adjust their rate offers, be careful with how you ultimately interpret next week’s interest rate pause.See what rates and terms you qualify for online now.Assume all lenders will have the same response to a rate pauseThere’s virtually no chance the Fed will cut interest rates this month, according to the predictor tool from the CME Group. But that doesn’t necessarily mean that all lenders will have the same response to a rate pause, as they may interpret the reasons for holding rates steady differently. And that, in turn, could result in a variety of different rate listings online, both in the days before the meeting and in the days after, once a rate pause has had a chance to reverberate throughout the economy. So shopping around to find a low mortgage purchase interest rate in the upcoming weeks will arguably be more important than usual. Consider securing rate quotes from at least three different lenders to establish a baseline you can then accurately and confidently compare against.Not locking in one of today’s lower optionsToday’s mortgage interest rates are still competitive and markedly improved from where they sat one year ago, even if they remain far from the record lows borrowers were offered at this same point in 2020 and 2021. So don’t automatically dismiss your options now. Many buyers could actually even benefit from locking in one of today’s lower rates right now, before the Fed rate pause is further extended and additional uncertainty is injected into the mortgage interest rate climate. Remember, many lenders will allow borrowers to float down their rate before closing, should rates be lower at that point (though this will often come with a fee). And you could always refinance in the future if rates are then considerably lower. But waiting for an ideal rate may not be the best approach now, especially before the Fed formally announces yet another interest rate hold.The bottom lineHomebuyers will always need to be strategic in their approach, but especially so in today’s evolving interest rate climate and even more so in the days prior to a Federal Reserve meeting in which interest rates could change again. By understanding these three missteps and by taking action to avoid them, homebuyers can make the best of today’s unpredictable economic terrain and better position themselves for success, both this month and over the long-term.
