How to get a mortgage rate under 6% this September

There’s finally some movement in the mortgage interest rate climate that benefits buyers.

After rising to their highest level in decades in 2023, mortgage rates temporarily plunged to a two-year low last September, timed to a big Fed rate cut. That decline, however, was quickly overcome by poor economic conditions, and rates subsequently ticked up again in the months that followed.

Now, however, with a new Fed rate cut looming, concerns over unemployment and the potential for not just one, but a series of cuts to be issued, the mortgage rate climate is cooling once again. Average rates fell over the summer and, last week, they dropped to their lowest level in 11 months, with the median rate for a 30-year term now sitting at 6.50%.

But with buyers well aware of the historic low mortgage rates at the start of the decade, many may be looking for a rate well below that figure. Fortunately, there are a variety of ways that you can secure a mortgage rate under 6%, potentially even this September. Below, we’ll break down three options worth considering right now.

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How to get a mortgage rate under 6% this September

Here are three effective ways that qualified borrowers with good credit scores can get a mortgage rate under 6%, starting this September:

Consider adjustable-rate mortgages

An adjustable-rate mortgage is exactly what its name implies – a mortgage in which the rate will adjust over time. But there’s a misconception that rates here change frequently when in reality they only change every few years, allowing borrowers to weather today’s unpredictable rate climate effectively. And, right now, a 7/1 ARM rate, in which the rate remains the same for the first seven years and then changes annually after, is only 5.97%, according to Money.com. And that’s an average, meaning that if you shop around for lenders, you may be able to find a rate even lower.

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Shop around for lenders

Shopping around for mortgage rates is one of the more obvious ways to find a below-average rate and, accordingly, may be underrated for how effective it truly is. In general, it’s possible to find a rate from 0.50% to 1% lower than the average rates listed with FreddieMac, for example. That would equate to a rate between 5.50% and 6.00% now. Still, this will take time and effort on behalf of the saver, and it may require having your credit checked multiple times. However, the work could be worth the effort if it pays off with a lower rate, which can potentially equate to thousands of dollars saved over the life of the loan (assuming it’s not refinanced).

Time the market strategically

This is one of the hardest ways to get a mortgage rate below 6% now, but it could also be one of the more effective ways. Mortgage rates hit that two-year low last September, right before the Fed cut rates, not after. So be ready to take action next week (the Fed is expected to announce its next cut on September 17). That said, this week could also offer new opportunities if the next inflation report seemingly encourages the presumed Fed rate cut. So you’ll need to be a bit nimble (and have a good credit score) to take advantage of these small windows of opportunity.

The bottom line

Mortgage rates are on the decline again, but with a little effort and smart strategizing, it’s possible to find a rate below the average 6.50% now, potentially even into the 5% range. By employing these tactics, either individually or in combination, buyers can do just that. Just understand that the rate climate is volatile and that it can change quickly, so you’ll need to be prepared to act accordingly.