3 smart mortgage moves to make before a December Fed rate cut

The likelihood of another Federal Reserve rate cut, the third such this year, is growing again.

Following an uptick in the unemployment rate in a report released last week, the chances of a rate cut at the Fed’s final meeting of the year on December 10 surged. As of November 26, 2025, there’s around an 85% chance the central bank will reduce rates again next month, according to the CME Group’s FedWatch tool. And while that’s good news for borrowers across the country, it’s even better news for homebuyers who have been stuck on the sidelines in recent years.

Mortgage interest rates hovered around 3-year lows timed to September and October Fed rate cuts, and they’ve declined considerably from where they were in January. Another reduction in December could cause them to fall even further, opening new windows of opportunity that seemed unattainable for many buyers just a year ago. 

For homebuyers to effectively exploit these openings, however, it helps to know which select moves to make now, before a December Fed rate cut is formalized. Below, we’ll detail three worth contemplating.

Start by seeing how low your current mortgage rate offers are here.

3 smart mortgage moves to make before a December Fed rate cut

Want to utilize this moment in the mortgage rate environment as effectively as possible? Then consider taking these three steps now, before a potential December Fed rate reduction:

Review your credit report for errors

When was the last time you took a close look at your credit report? If you’ve never done so or haven’t looked in the recent past, consider doing so now, before a mortgage lender does in the weeks ahead. Review your report for errors, inaccuracies and outdated information that may still be listed. Then, proceed to promptly dispute it with the goal of these items being scrubbed from your report. 

All of this takes time, patience and follow-up, so starting it now, before lenders use it to influence the rates they ultimately offer you, makes sense. And even if the report is totally clean, it will provide you with a more accurate and timely view of your credit standing as you begin the homebuying process.

Learn more about mortgage rates and lenders online now.

Shop around for rates and lenders now

Chances are high that the mortgage lenders offering the most competitive rates and affordable terms in November will be the same ones to do so in the days following the December rate cut. It makes sense, then, to narrow down your search and find out who these lenders are now, in advance, so that you’re ready to lock in a rate once the cut becomes official. 

Shopping around for mortgage lenders has been shown to result in a rate differential of 50 basis points to a full percentage point. That’s the equivalent of tens of thousands of dollars saved over the life of the loan, depending on the amount borrowed. So it’s critical that you complete this step normally, but especially so right now, with another Fed rate cut looming.

Get pre-approved for more than you may need

A mortgage preapproval demonstrates to sellers that you’re a serious buyer and that you have the financial capability to support any offers you may make. 

But getting pre-approved for more than you may need can’t hurt (within reason). Homebuying is often complicated and competitive, and you may find yourself in a position where you have to make a bid higher than you anticipated. In circumstances like these, it helps to have a pre-approval in hand worth more than you initially thought you needed. 

This doesn’t mean that you have to overspend or that you should get pre-approved for hundreds of thousands more than you can realistically afford. But a higher pre-approval can’t hurt to have now, especially if the market heats up following a December Fed rate cut and others in 2026.

The bottom line

Homebuying should always be done strategically, but especially so now that rates here are cooling again and new, more affordable options are available. By considering these three moves now and by starting to implement them, buyers can better position themselves for homebuying success both after a December Fed rate cut and potentially in the months and years ahead, too.