Why Waiting for Lower Interest Rates Might Cost You More in the Long Run
If you’ve been waiting for mortgage rates to drop back down to 4% before buying a home, you may want to reconsider that strategy. Let’s break down why acting now might actually make more financial sense than continuing to wait.
The Market Then vs. Now
Let’s rewind about six months. Back then, a $450,000 home might have received multiple offers—often driving the final sale price up to around $500,000. With a 4.5% interest rate and 10% down, your monthly mortgage payment would’ve been just over $3,000.
Fast forward to today. With less demand in the housing market, that same home could now be listed for $450,000—and you might even be able to negotiate down to $425,000. Yes, today’s interest rate is around 6.5%, but with 10% down, your monthly payment still comes out to a little over $3,000—only about a $20 difference from six months ago.
Why This Matters
Even though rates are higher right now, home prices have adjusted. The drop in competition gives buyers more room to negotiate, ask for seller concessions, and even request a rate buydown to help lower monthly payments.
In other words, while everyone else is waiting for that “perfect” interest rate, you could be securing a great home at a lower purchase price—with fewer bidding wars and more favorable terms.
The Bottom Line
If interest rates are the only thing holding you back, it might be time to rethink your approach. Real estate is about timing and opportunity—and right now, buyers have both on their side.
