Should You Wait for Mortgage Rates to Drop? Here’s What You Need to Know
“This may not be your forever home — but it’s also not your forever loan.”
— Amber Jones, Certified Mortgage Advisor
Should You Wait for Mortgage Rates to Drop? Here’s What You Need to Know
By Amber Jones
If you're renting and paying $3,200 or more each month, you may be asking:
“Should I wait for mortgage rates to drop before buying a home?”
This is one of the most common questions I get. And in this short article — and the video included below — I’ll walk you through what’s really going on, why waiting might cost you more, and how to decide what’s right for you.
🎥 Watch the quick video overview below to get started:
What’s Happening With Mortgage Rates Right Now?
A few years ago, mortgage rates were very low — around 2 to 3%. But today, they’re averaging about 6.6% and have been in that range for a while.
Many people thought rates would come back down quickly. But so far, they haven’t.
Experts say we may not see those super-low rates again for a long time. And even if they drop slightly, it may not be enough to make a huge difference in your monthly payment.
While You Wait, Prices Keep Rising
Here’s something a lot of renters don’t realize:
Even though interest rates feel high, home prices are still going up in many areas. Not as fast as before — but still climbing.
So the longer you wait:
The home you want could get more expensive
You may need a bigger down payment
You’re spending thousands in rent that builds no equity
If you’re paying $3,200/month in rent, that’s over $38,000 a year going straight to your landlord — not toward building your future.
Should You Wait for Prices to Drop Instead?
Some people hope that if they wait, home prices will fall.
Here’s what’s important to understand:
Even if prices go down a little, that doesn’t always mean you’ll save money. If interest rates stay the same — or go up — your monthly payment could be just as high (or higher).
The real number to focus on is your monthly payment, not just the sticker price of the house or the rate itself.
Focus on What You Can Afford Now
Instead of waiting for the "perfect rate," here’s a better approach:
Look at what you’re already paying in rent
Figure out what monthly mortgage payment you could afford comfortably
Talk to a mortgage expert to see what that payment could get you
If you can afford your rent, you might already be able to afford a mortgage — and that money would go toward something you own, not something you lease.
“It’s not about timing the market. It’s about knowing what works for your budget right now.”
Can You Refinance Later If Rates Drop?
Yes. That’s one of the most helpful parts of owning a home. If interest rates go down in the future, you can refinance to get a lower monthly payment.
So buying now doesn’t mean you’re stuck with today’s rate forever.
It just means you’re starting to build equity sooner — while still keeping the door open for better options later.
FAQ: Common Questions About Waiting vs. Buying
What if rates drop right after I buy?
You can refinance to lower your payment.
What if I don’t have 20% saved?
You may not need that much. Many buyers get in with much less, depending on the loan type.
Isn’t buying now risky?
There’s always risk in waiting or buying — but paying high rent for years and getting nothing in return is also a risk.
How do I know what I can afford?
Start by talking to a mortgage strategist who will walk you through real numbers based on your income and goals.
Watch the Full Video to Learn More
This article gives you a quick overview — but the full video explains everything step by step, in a way that’s easy to follow.
Whether you’re just curious or getting serious about buying, I strongly recommend watching it. You’ll walk away with:
A clear view of what’s happening in the market
A better understanding of your own numbers
A smarter way to decide whether to buy or wait
Scroll back up and watch the video now — it could save you thousands in the long run.
