One of the biggest questions homebuyers face today is whether to buy now or wait for mortgage rates to drop. With average rates currently sitting in the low to mid-6% range—depending on your credit score—it’s understandable that many are watching the market closely.
Mortgage rates often fluctuate with changes in economic news, inflation reports, and Federal Reserve policy. Right now, many motivated buyers seem to be holding out for a 6% rate or lower before making their move. But is waiting really the best strategy?
Why Buying Now Could Make Sense
There are a few compelling reasons why buying now might be a smart decision:
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Inventory is Up – More homes are on the market than in recent years, which means you have a wider selection. That makes it easier to find a property that truly fits your needs instead of settling for “good enough.”
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Price Growth Has Slowed – After years of steep increases, home price growth has moderated. In many areas, prices are holding steady or increasing at a much slower pace, giving buyers more realistic pricing to work with.
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More Room to Negotiate – With more listings and fewer bidding wars, sellers are often more willing to negotiate. You may be able to secure a lower purchase price, closing cost credits, or other concessions that weren’t possible in the hot market of 2021–2022.
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Refinance Opportunity Later – Even if you lock in a mortgage at today’s rates, you can take advantage of refinancing if rates drop in the future. Historically, when rates fall, home prices tend to rise as more buyers enter the market—so buying now could mean you build equity faster.
The Risk of Waiting
If you wait for lower rates, you might find yourself facing stiffer competition and higher home prices once the market heats up again. A drop of even half a percent in mortgage rates can bring a wave of buyers off the sidelines, quickly pushing prices upward and reducing negotiating power.
If you find the right home and the payment fits your budget today, buying now offers both choice and negotiating leverage—two things that might be harder to come by if you wait. With the option to refinance later, you can secure a home at today’s price and potentially enjoy tomorrow’s lower rates.
