The first Fed interest rate cut in years is on the horizon.

The 30-year fixed rate mortgage decreased to 6.78% on July 25 from 7.22% on May 2. The Federal Reserve is expected to cut interest rates, influencing mortgage rates to go down. Homebuyers are waiting for rate cuts, with experts predicting cuts in September, November, and December. Refinancing is increasing as rates drop, with experts suggesting refinancing when rates are at least 50 basis points lower. Timing the refinance depends on factors like monthly payments and closing costs. Lower rates may lead to increased demand in the housing market, affecting prices.