Mortgage interest rates are falling to lower levels as many anticipate a rate cut at the Fed’s Sept. 18 meeting. Rumors that the cut may be 50 basis points, bringing it down to 4.75% are swirling, and this is prompting lenders to cut rates. Reuters reports on the drop in mortgage interest rates:

Borrowing costs on 30-year fixed-rate mortgages, excluding
fees, averaged 6.25 percent, down 0.17 percentage point from
the previous week, their lowest since the week ended May 18
when they stood at 6.23 percent.

This means that mortgage applications are on the rise. And, if you have good credit and are in the market for a home loan, now may be a good time to start poking around. But I wouldn’t lock in an interest rate until after Tuesday, to wait and see if maybe the mortgage interest rates will drop a little more.