According to St. Germain, the Fed is likely to prioritize its dual mandate of keeping inflation in check, even with the political pressure increasing. As a result, prospective homebuyers shouldn't expect August to usher in much change for mortgage rates.

A lower rate should be “enough of an incentive” for some homeowners to sell their homes and trade up, opening up inventory.

The average rate has dropped recently because mortgage deals for those with small deposits have started to fall