Mortgage rates have been high for some time, and it's making it hard for buyers and homeowners alike. Potential homebuyers are hesitant to jump into the market, holding out hope that mortgage rates drop and homes get more affordable. 

A large percentage of homeowners, on the other hand, managed to secure lower mortgage rates than what's available in today's market. As a result, trading in those low rates via mortgage loan refinancing just doesn't make financial sense in most cases.

Still, getting a mortgage right now isn't necessarily a bad idea. It just means borrowers need to be strategic about how they go about it. 

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Mortgage rate advice that buyers should know now, according to experts

Are you thinking about buying a house or refinancing your mortgage soon? Here's what experts say you should know.

Watch the Fed meetings and tariffs 

If you're holding out for lower mortgage rates, the best thing you can do is watch the next moves from the Federal Reserve's Federal Open Market Committee, which will heavily impact interest rates on mortgages and all other consumer borrowing and interest-bearing products.

"Mortgage rates are likely to trade near their current 7% range through the June 18 FOMC announcement because the Fed is likely to continue waiting for more data," says Jeff Taylor, board member for the Mortgage Bankers Association and founder and managing director at Mphasis Digital Risk. "If core PCE inflation rises when it's next released at the end of June, it would cause upward rate pressure."

Lower inflation, on the other hand, could mean the opposite, with reduced rates on loans and mortgages to follow. 

You should also pay attention to what happens with the new administration's proposed tariffs, which were recently reinstated by a federal appeals court after a brief pause. 

"Rates have been strongly influenced by both the short-term and long-term uncertainty of the impact of tariffs on the economy," says Darren Tooley, team sales manager at Union Home Mortgage.

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Use buydowns strategically

Most experts predict that mortgage rates will drop at some point this year, but it likely won't be anything "dramatic," Tooley says. 

In fact, Fannie Mae predicts the average 30-year mortgage rate will drop to 6.1% by the end of the year, while the Mortgage Bankers Association forecasts a 6.6% average — a mere 0.29% lower than today's average rates.

If you want these slightly lower rates, you can wait it out or if you need something even more affordable, experts say a temporary rate buydown can be a good option these days. These allow you to pay a fee for a lower interest rate for the first one, two or three years of the loan.

"In today's market, don't wait," says Kevin Watson, senior home loan specialist at Churchill Mortgage. "I recommend negotiating a temporary buydown for a couple years as we let this instability settle. Then, if and when rates drop, you can refinance."

Acting soon is especially important as home prices keep rising. Once rates drop, experts say prices will increase even more.

"While waiting might afford you a lower interest rate, it comes with both risk and possible cost, especially if improved rates trigger a buyer surge that pushes home prices higher," Tooley says. "If you find a home you love and can afford, the best move may be to buy now and refinance later."

You can (and should) negotiate

With rates where they are, buyers aren't really clamoring for homes like they once were, and that makes lenders and home sellers a little more amenable to negotiations. They might be willing to pay for discount points, which permanently reduce your interest rate, or provide other concessions that can help you offset the costs of higher rates.

"Homebuyers can negotiate closing cost credits from sellers, and those credits can be used to pay points to buy down a rate," Taylor says. "In general. it's better to ask for a rate buy down than a reduction in the selling price. Over a 30-year term, the rate buydown offers greater monthly savings compared to the price reduction."

You can talk to your real estate agent if you're interested in negotiating a buydown or concession with your seller. If the market is particularly slow in your area or they're motivated to sell fast, they might be willing to make an offer.

"Letting the seller buy down the rate to a more affordable payment for your budget is a great idea," Watson says. "Most sellers are accepting these offers today due to the market being a little more buyer-friendly than in the past few years."

Think carefully before refinancing

Finally, if you're thinking about refinancing, know your reasons. If it's for a lower interest rate or payment, run the numbers. According to Realtor.com, the vast majority of homeowners (82%) have a rate below 6% right now, so refinancing at today's higher rates likely won't help in the costs department. 

If you're considering refinancing to take cash out, improve your home, or pay off higher-interest debts, though, "That isn't a bad idea, as long as you don't run up all those cards again and get into more debt after you refinance," Watson says. 

You also might think about refinancing if it will remove PMI or if you can refinance into a shorter-term loan. While this would come with a higher monthly payment, it would likely get you a lower rate and help you save significantly on interest in the long run. 

Just make sure you get preapproved for your refinance early. 

"Then you can watch the rate market with your lender and lock your rate when rates dip," Taylor says.

The bottom line

Whether you're buying a home or thinking about refinancing, today's mortgage environment requires a more thoughtful, strategic approach than in years past. While high rates may feel like a barrier, tools like rate buydowns, seller concessions and smart refinancing can help make the numbers work if you plan carefully. Keep a close eye on inflation data, Fed meetings and economic policy changes that could shift rates. And if you find a home that fits your needs and budget, waiting for the "perfect" rate could end up costing you more in the long run.