If you're thinking about buying a home but holding off for lower interest rates, you're not alone. Many potential buyers are playing the waiting game, hoping that a dip in mortgage rates will make homeownership more affordable.
But here’s the truth most people miss: when rates fall, competition rises—and so do home prices. That “wait and see” strategy could actually cost you more in the long run.
Let’s break down why buying now, rather than waiting, might be the smarter move.
When mortgage rates drop, affordability improves, and that draws more buyers into the market. As demand rises, so do home prices.
You might get a better rate later, but you’ll also be competing with more buyers, potentially paying tens of thousands more for the same home.
Example:
One of the most important things to keep in mind is this:
You can refinance your mortgage rate later. You can’t renegotiate your purchase price.
If you buy a home now, you lock in today’s price before demand surges and prices rise further. When rates eventually fall, you may be able to refinance and reduce your monthly payment.
This strategy is often called "buy now, refi later," and it’s helped many homeowners build equity faster by getting in early.
If you’re ready to buy but concerned about the rate, here are a few ways to make it work:
Trying to time the market perfectly is risky. While waiting for rates to drop might sound logical, it could put you in a more expensive and more competitive position down the road.
If you’re financially ready to buy, now could be the best time to make your move. Secure the home at today’s price, then refinance if and when rates drop.
Schedule a consultation to speak with a loan officer or start the process online today.