A lot of buyers are sitting on the sidelines right now, saying:
“I’m just going to wait until interest rates drop before I buy.”
It sounds like a smart money move—but in reality, waiting for “the perfect rate” can end up costing more than acting now.
The Problem With Waiting
Interest rates move up and down based on many factors—economic reports, inflation, global events, and even market speculation. Predicting exactly when they’ll drop (and by how much) is almost impossible, even for experts.
While you’re waiting:
Home prices may rise, increasing the amount you need to borrow.
Inventory could tighten, making it harder to find the right home.
Competition could spike when rates drop, leading to bidding wars.
Even a small delay could mean missing out on your dream home—or paying more over time.
The Real Cost Example
Imagine you’re looking at a $300,000 home today at a 6.5% interest rate. If you wait for rates to drop by 1% but home prices increase by even 5% during that time, the savings from the lower rate might be canceled out—or you could even end up paying more over the life of the loan.
Here’s a quick breakdown:
Current scenario: $300,000 home at 6.5% = ~$1,896/month (principal & interest)
Wait scenario: $315,000 home at 5.5% = ~$1,787/month
The monthly payment might look lower, but the total loan amount is higher, and you’ve spent valuable months paying rent or waiting.
What You Can Control
You can’t control interest rates, but you can:
Shop around for the best rate available now
Consider a rate buydown from your lender or seller
Refinance later if rates drop significantly
Focus on finding the right home in the right location—because that matters more over time than the difference of a percentage point
The Bottom Line
Waiting for rates to “get better” can mean missing the right home entirely. A better strategy is to buy when the timing works for your life and your finances—then refinance if and when rates improve.
Thinking about buying?
A local real estate professional and a trusted lender can help you:
Understand today’s numbers
Explore options for lowering your payment
Create a plan that works—no crystal ball required
Don’t let “perfect timing” stand in the way of the right home. The best time to buy is when it works for you.
Thinking About Buying? Let's Talk!
Phone - (717) 913-8139