Should you lock in a mortgage rate before the April Fed meeting?

In a different economic climate, a looming Federal Reserve meeting would be welcomed warmly by borrowers, especially those looking to buy a home or refinance their existing one. The Federal Reserve, after all, is a big driver behind mortgage interest ratesand rate cuts issued in these meetings have previously resulted in lower mortgage rates, occasionally even by substantial amounts. Mortgage rates plummeted to a multi-year low, for example, last September timed against a Fed rate cut that month. And that same dynamic played out in September 2024too.

But the central bank meeting on April 28 and April 29 will take place in a significantly different economic environment. Inflation just surged to its highest level in years in the most recent report from the Bureau of Labor Statistics. And while unemployment is down again, it had risen in the month prior, and geopolitical tensions and overseas conflicts are leaving the Fed with multiple factors to weigh right now. Against this backdrop, borrowers may be wondering about the benefits of locking in a mortgage rate right now, before the April Fed meeting kicks off.

Is that the right move to make, though? Below, we’ll detail three reasons why it may be.

Start by comparing your current mortgage rate offers here.

Should you lock in a mortgage rate before the April Fed meeting?

While a mortgage rate lock before the April Fed meeting won’t be the right call for every borrower, many others may find it to be the smart and strategic choice to make now. Here’s why:

Rates have stabilized

The average mortgage interest rate for a 30-year term in early March was 5.75%. That had risen to 6.37% by March 31driven by significant market volatility. But it’s since stabilized a bit and has remained largely at 6.25% in recent days.

While that’s still a half a percentage point above where it sat barely one month ago, it does look like the continuous increases have slowed, at least for now. So you may be able to shop around for rates with less urgency, which has been shown to result in below-average rates. Just don’t wait for an ideal one, either, as rates change daily and could rise again soon. Instead, when found, consider locking it in.

Shop for mortgage rates and lenders online today.

They could rise without a formal Fed rate hike

While there’s less than a 2% chance that the Fed will reduce interest rates when it meets again this month, according to current projections from the CME Group, that doesn’t mean that mortgage rates won’t rise instead. Comments made post-meeting by officials can have an impact on the rate climate, and mortgage rates won’t be exempt, especially if those comments imply higher rates for longer.

And lenders won’t even need to wait for the Fed meeting to conclude to adjust their rate offers to borrowers, perhaps in an upward direction to get ahead of any volatility that comes out of that meeting. Understanding this increasingly realistic dynamic, then, borrowers may want to protect themselves via a mortgage rate lock now.

There won’t be another Fed meeting until June

While the Federal Reserve remains a single driver behind mortgage rates, it remains one of the most important ones. And there won’t be another Fed meeting to discuss interest rate policy after the April one until June 16, essentially delaying any rate relief the bank can offer for months. And, as has been clear in recent weeks, rates can and will adjust on their own, even when the bank isn’t meeting.

In other words, even if the trajectory of rate cuts significantly improves, that cut won’t even be issued again until almost summer, barring any unexpected developments that could cause the Fed to meet sooner. So locking in one of today’s imperfect rates could make sense, especially considering that you may be able to float it down to a new, better one before closing (should a better offer materialize).

The bottom line

While mortgage interest rates this April aren’t as affordable as they were in early March or mid-February, they’re still marginally better than what borrowers were accustomed to in recent years and, historically, remain in line with averages from the past. And with volatility in the space especially pronounced right now, qualified borrowers may find that locking in a mortgage rate now, before the April Fed meeting, is their next best step. Consider speaking with a lender directly, who can outline your choices and discuss options that may not be clearly listed on their websites.