Should you wait for the Federal Reserve to cut rates before buying a home? Not so fast.

In this conversation, we break down a common misconception: the Fed does not directly control 30-year mortgage rates. While Fed rate cuts can influence short-term borrowing costs like credit cards and adjustable-rate loans, mortgage rates are more closely tied to the 10-year Treasury yield and broader market expectations around inflation, economic growth, and investor demand.

We also explore a key dynamic many buyers overlook—timing the market based on anticipated rate cuts can actually increase competition. When multiple buyers wait for rates to drop, demand can surge while housing supply remains limited, potentially driving home prices higher and offsetting any benefit from lower rates.

The takeaway: rather than trying to time interest rates, focus on preparation. Understanding your budget, exploring loan options, and working with the right professionals may put you in a stronger position than waiting on the next Fed decision.