Will Mortgage Rates Drop After September 17?

If you’ve been keeping an eye on the housing market, you know that mortgage rates are a big factor in how far your budget can stretch. One question we’re hearing a lot right now is: “Will mortgage rates drop after September 17?”

That’s the date of the next Federal Reserve meeting, and the outcome could have ripple effects on mortgage rates. Let’s dig into what’s being predicted.

📊 What Experts Are Saying

• The Fed’s Decision Will Set the Tone
  The Federal Reserve doesn’t set mortgage rates directly—but its policies influence the bond market, which drives them. If the Fed cuts rates on September 17, mortgage rates could hold steady or decline slightly. If the Fed chooses to keep rates unchanged, there’s a chance mortgage rates might edge upward.

• Forecasts Point to Gradual Easing
  Industry projections from Fannie Mae and the Mortgage Bankers Association suggest a slow downward trend:

  • Q3 2025: ~6.7%

  • Q4 2025: ~6.5–6.6%

  • Q1 2026: ~6.4–6.5%

  • Q2 2026: ~6.2–6.5%

• Still Hovering Above 6%
  While many are hoping for a bigger break, most analysts agree rates will stay in the mid-6% range for the rest of 2025, with meaningful drops more likely to show up in 2026.

🏡 What It Means for Middle Tennessee Buyers & Sellers

• For Buyers: Even if rates slip after Sept. 17, the changes are expected to be modest. Waiting could save you a little—but if the right house comes along, acting now may be the smarter play.

• For Sellers: Buyer confidence often ticks up when there’s news of falling rates, even if the change is small. That could translate into more traffic and stronger offers.

• For Both: National rate trends matter, but local housing activity here in Murfreesboro, Franklin, Brentwood, and Nashville ultimately drives opportunities.

🔎 Our Take

So—will mortgage rates drop after September 17? Possibly, but don’t expect a dramatic shift. Experts predict only slight movement, with a more noticeable easing trend spread out into 2026.

At The Fraker Group @ Real, we’re watching the market closely so our clients can move with confidence. Whether you’re looking to buy, sell, or just keep a pulse on the numbers, we’re here to help you make the right move at the right time.

👫 Jason & Allison Fraker
The Fraker Group @ Real
📞 Direct: 615-456-8016 (Jason) | 615-533-5622 (Allison)
🏢 Office: 844-591-7325
📧 info@thefrakergroup.com
📍 1 Music Cir, Office 318, Nashville, TN 37203

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