But mortgage rates are expected to finish the year at 6.4%, economists forecast. And most are not able to confidently predict when they will go below 6%. It has been nearly three years since the 30-year rate was below 6%. During the height of the pandemic, the average 30-year rate dropped to 2.67%. That was in late 2020.

Mortgage rates are likely to tick up even as the Federal Reserve said on Wednesday its target interest rate would remain unchanged. But what really matters for home financing costs is economic data and the market outlook in the run-up to September’s meeting.

Mortgage rates have dropped, but it's likely not tied to today’s Fed news. Here’s why waiting for a Fed rate cut could be a poor strategy for homebuyers.