The mortgage rate climate has experienced extremes on both sides in recent years. After hovering near record lows during the pandemic in 2020 and 2021, mortgages rates surged in the following years in response to inflation, hitting their highest point since 2000 last summer. And while rates have dropped since, they’re not nearly as low as many homebuyers would prefer. A cut to the federal funds rate that many had anticipated would come this June now looks delayed thanks to a series of disappointing inflation reports to start the year. 

Still, there are some strategic moves homebuyers can still make now. And with the next inflation report scheduled to be released on June 12 — the same day the Federal Reserve concludes its next meeting — changes could be coming in June. With that understanding, then, homebuyers should consider making some smart moves for June now. Below, we’ll break down three of them.

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3 smart mortgage moves to make for June

Are you a homebuyer preparing to buy a home in June or later this summer? Then consider making these moves now.

Shop for lenders

While mortgage rates are high across lenders, they won’t all offer buyers the same rate. Some will be slightly higher than average and some will be slightly lower ‚— and other lenders will offer better terms and lower closing costs that could offset some of the interest rate costs. So be sure to shop around now, before you’re ready to lock in a rate, so you know exactly which lender to work with. Since the real estate market is still so difficult to predict, and rates could change mid-month, it behooves buyers to have their lender in mind now, so they’re ready to move ahead with the next steps if they find a home in June. 

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Stop using credit

In an uneven mortgage rate climate like we’re currently experiencing, buyers will need to be proactive and be prepared to lock in a rate as soon as it becomes available. Waiting could lead to a missed opportunity. But when that opportunity comes, you’ll want to make sure you’re in as ideal a position as possible, with the highest credit score and cleanest credit profile possible. 

That means you should stop using your credit now, or at least curtail your use, to avoid appearing risky to lenders. By doing so, you can potentially boost your score and improve your standing with lenders so that you’re ready to act when a favorable rate surfaces. But since it takes time for this activity to reflect on your credit, it’s important to start now so you’ll have a better credit profile for June.

Calculate your down payment

Do you know exactly how much money you plan to put down when buying a home? You’ll need to know this when working with a lender — and you’ll want to know this now so you’re prepared to move when an advantageous mortgage rate becomes available. Plus, some lenders may offer you a better rate and terms if you’re putting more money down. 

But, if you put less than 20% down, you’ll need to pay private mortgage insurance (PMI) until you’ve met that threshold. So calculate your down payment now, clearing the way to lock in a rate if it becomes available at some point in June.

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The bottom line

With the next inflation report and the next Federal Reserve rate announcement set for June 12, the potential for rate changes in June is high. Even a hint at rate cuts or increases to come, absent a formal adjustment, could affect rates lenders offer for all products, including mortgages. Understanding this dynamic, homebuyers should strongly consider shopping for lenders now, refrain from using excessive amounts of credit and start crunching their down payment costs. By making all three moves now buyers will be prepared to take advantage of a small window of opportunity that could briefly open in June.