Veteran broker: don’t expect Fed magic at this week’s meeting

Higher Treasury yields are pushing mortgage rates higher, but Kristin O’Neil of Open Door Lending says many buyers are choosing to move forward as home prices and tight inventory continue to pressure affordability.https://t.co/Xdsj29b3e5

— Mortgage Professional America Magazine (@MPAMagazineUS) July 24, 2026

What brokers can do while they wait

With no Fed cavalry coming, Cohn says the more productive conversation for brokers right now is about tools — and there are four worth discussing with clients today.

Adjustable-rate mortgages suit buyers who don’t plan to stay in the home long term or who expect rates to ease over the next few years. As mortgage professionals increasingly lean on ARMs to restore affordability in 2026, Cohn notes they also work for borrowers anticipating income growth who want a lower payment upfront — though she is direct about the downside: there is no guarantee rates will fall before the first adjustment.

Interest-only mortgages work best for borrowers who expect to pay down principal through bonuses, asset sales, or other non-salary income. The key risk: if no additional payments are made during the interest-only period, the full loan balance remains outstanding when that period closes.

Temporary buydowns allow buyers to lock a rate 2% lower in year one and 1% lower in year two. Borrowers must still qualify at the full note rate, but the structure provides real payment relief early, a useful bridge in a market where many expect conditions to ease.

Paying points rounds out the toolkit. One point — equal to 1% of the loan amount — typically reduces the rate by around 0.25%, while two or more points can lower it by roughly 0.50%. Cohn says this strategy is most effective on fixed-rate loans held long term, where the upfront cost is recouped through sustained savings over time.