A Rate Cut is Coming. What's Your Move?

Good Morning! For anyone who has felt sidelined by the housing market, a window of opportunity is opening. In this edition, we're breaking down the anticipated Fed rate cut and sharing powerful, practical strategies you can use today to make a winning offer and improve your affordability.

"Luck is what happens when preparation meets opportunity." — Seneca

What’s The Rate?

Average rates for primary homes with % changes from May according to Freddie Mac

Top Mortgage News

• Trump Preparing IPO for Fannie Mae and Freddie Mac Later This Year (WSJ)

• Mortgage rates continue their slow march toward 6% (HousingWire)

• Powell signals a Fed rate cut may be coming (ScotsmanGuide)

• Where Mortgage Rates Are Headed Through 2026—And What It Means for Buyers (Investopedia)

• Senate Passes House Version of Trigger Leads Bill (consumerfinancemontior)

(Articles are not endorsed in any matter by Agave Home Loans)

Performance Stats

• $32,101,489 Total Funded Volume in July

• 151 Families helped close on a loan!

The Fed Highly Likely to Cut Rates in September – What That Means for You

The Federal Reserve currently has its benchmark interest rate at 4.25%–4.50%, but projections show that it may lower the range to 4.00%–4.25% in September.

What this means:

• This is essentially a ~0.25% rate cut, the first sign of easing after a long period of rate hikes.

• Short-term borrowing costs (like credit cards, personal loans, and HELOCs) could become a little cheaper.

• For mortgages, rates don’t move directly with the Fed’s decision, but these cuts often signal a shift in the economy that can bring downward pressure on long-term rates (like the 30-year fixed)

This could open up opportunities for buyers and homeowners who’ve been waiting on the sidelines for affordability to improve. It’s not a dramatic drop, but it’s a step in the right direction.

Over the last 3 months, we have seen almost 1% drop in the rates! Rates may continue to drop as we progress into Q4.

If you’re curious how this change could impact your home financing options—or if refinancing might make sense for you—let’s connect.

How to Make the Strongest Offer in Today’s Housing Market

Understanding how mortgage rates work is key to getting the best deal on your home loan. While complex economic forces like Federal Reserve policy and inflation are beyond your control, several key factors are firmly in your hands. Your credit score, the length of your loan, and the size of your down payment all directly impact the interest rate you'll receive.

What You Can Control:

• Credit Score: A higher score (ideally 740+) unlocks the lowest rates.

• Loan Term: Shorter-term loans, like a 15-year mortgage, typically have lower rates than 30-year loans and are better priced.

• Down Payment: A larger down payment (reducing your loan-to-value ratio to 80% or less) signals less risk to lenders, which can earn you a better rate.

Good News on the Horizon?

Recently, the Federal Reserve has signaled a potential interest rate cut for September. This could be a proactive move to protect the labor market, and even a small cut could provide much-needed relief to the housing market. For buyers, this may lead to lower mortgage rates, improving affordability and making homeownership more accessible.

How to Win in Today's Market

While waiting for rates to drop further, you can make your offer stronger now. The smartest strategy today focuses on maximizing the seller's net profit. By using a flat-fee buyer's agent instead of a traditional one, you can significantly reduce the commission costs paid by the seller.

This creates a powerful advantage. You can use those thousands in commission savings to:

• Increase your offer price without spending more out-of-pocket.

• Permanently buy down your interest rate, lowering your monthly payment for the life of the loan.

• Fund a temporary buy down to ease your payments for the first two years.

You can also explore taking slighter higher rates to get lender credits. Lender credits can help offset closing costs of a loan or be utilized to fund the programs mentioned above like a temporary buydown. As rates come down, pricing improves to where buyers can obtain competitive low rates and qualify for programs. Best of both worlds!

In short, by being strategic with your agent choice and working with your lender, you can effectively lower your housing costs and make your offer stand out, regardless of what the Fed decides.

Click here to read the full guide 👇

If you want to find out what rates and programs you qualify for based on your personal profile, please fill out this form 👈

Sweet Visuals: Fed Dot Plot & Rate Drop Savings

Fed Rate Prediction for September Meeting: 89.5% chance rate cut of 0.25%-0.5%

Source: FedWatch

The Real-World Impact of a 0.5% Rate Drop

Here’s how a small 0.25% interest rate reduction on a $400,000 loan can translate into significant savings over time.

*Disclaimer: Example based on a 30-year fixed-rate mortgage of $400,000, comparing a 6.50% rate to a 6.25% rate. Savings are approximate and for illustrative purposes only.

Here’s what a more extreme 0.5% rate drop might look like.

*Disclaimer: Example based on a 30-year fixed-rate mortgage of $400,000, comparing a 6.50% rate to a 6.00% rate. Savings are approximate and for illustrative purposes only.

Sticky Media: The Latte Factor

After diving into The Psychology of Money and learning how our emotions and behaviors shape financial outcomes, it’s time to bring the focus back to the everyday choices that quietly define our long-term wealth. The Latte Factor by David Bach delivers this lesson through a simple, story-driven approach: financial freedom isn’t built on windfalls or perfect timing — it’s built on small, consistent actions.

The book follows the journey of a young professional who feels stuck in the paycheck-to-paycheck cycle. Through the guidance of a mentor, she discovers that by redirecting just a few dollars a day toward savings and investments, she can unlock possibilities she never thought possible. Bach calls this the “latte factor,” but the message goes far deeper than skipping coffee. It’s about reclaiming control over your money and using it intentionally to build freedom, security, and ultimately, a life aligned with your values.

The Latte Factor is quick to read, practical, and surprisingly inspiring. If last month’s book explained why money behavior matters, this month’s pick shows you how to put it into practice — one small daily choice at a time.

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