You shouldn't rush into a home purchase (even if rates are falling) if it doesn't make sense for your budget or lifestyle. Taking extra time to build your credit score and put aside cash for a bigger down payment will help you in the long run, while also helping you save money on your future mortgage.

Interest rates are going down — but aspiring homeowners waiting for lower mortgage rates aren’t feeling relief. For years, wannabe buyers have waited for the Federal Reserve to lower rates after the central bank pushed them to the highest level in decades.

The Federal Reserve is set to issue another rate cut this week. Here's what could then happen to mortgage rates.

Rates on 30-year new purchase mortgages edged 2 basis points higher Friday, pushing the flagship average up to 6.90%. That matches the highest 30-year average since July 9 and is more than a full percentage point above the two-year low enjoyed in September, when the average sank to 5.89%.

While the Federal Reserve doesn't directly set mortgage rates, it influences them by making changes to the federal funds rate, the interest rate that banks charge each other for short-term loans. The Fed's decisions alter the price of credit, which has a domino effect on mortgage rates and the broader housing market.