With mortgage rates higher than we've seen in recent years, many would-be buyers are asking the same question: "Should I wait to buy a home until rates come down?"It’s a fair question, but the real risk isn’t today’s interest rates. The real cost is waiting too long and facing higher prices, more competition, and fewer options when the market heats back up. In this post, we’ll break down why buying now, before rates drop, could save you money in the long run.
Today’s higher rates have created hesitation among buyers, which means:
Buyers right now are getting discounts, concessions, and closing cost assistance that were nearly impossible to get during the frenzy of low-rate markets.
As soon as rates begin to drop—and they eventually will—demand will come roaring back.
Why?
The same house that’s negotiable today could have multiple offers next year.
It’s important to remember:
You can refinance a mortgage, but you can’t go back and re-buy a house at last year’s price.
The price you pay for a home determines your equity, your property taxes, and your long-term wealth. When home values go up (as they historically do), waiting could cost you tens of thousands of dollars in missed appreciation.
If rates go down in the future, you can refinance and lower your payment, but you’ll have already locked in today’s price.
Let’s say you’re eyeing a $400,000 home today with a 6% interest rate. You’re hesitant, thinking you’ll wait for rates to drop.
Now, imagine rates drop to 5% next year, but that same home is now $440,000 due to increased demand.
You saved on the rate, but paid more overall.
And if competition heats up, you might have to:
No one can perfectly time the market. But what you can do is act strategically:
Schedule a consultation to speak with a loan officer or start the process online today.