Should You Buy a Home Now or Wait for Rates To Drop?

Mortgage rates continue to make headlines, and it’s easy to see why. After the most recent jobs report came in weaker than expected, the bond market shifted quickly. That led to rates in early August dipping to 6.55%—the lowest we’ve seen so far this year.

At first glance, that may not sound like much. But for buyers who’ve been sitting on the sidelines, even a small drop sparks hope that lower rates are finally on the horizon. So, what should you realistically expect? 

Most industry forecasts say rates won’t fall dramatically anytime soon. Instead, they’re expected to hover in the mid-to-low 6% range through 2026. In other words, the chances of a big drop are slim—but small shifts like the one we just saw are still likely as new economic reports come in.

What Rate Would Push Buyers Back Into the Market?

The “magic number” many buyers are eyeing is 6%. And it’s not just psychological... it has real buying power. According to the National Association of Realtors (NAR):

“5.5 million more households could afford the median-priced home”

“And roughly 550,000 people would buy a home within 12 to 18 months”

That’s a huge wave of demand just waiting for the right opportunity. Fannie Mae predicts we could reach that 6% threshold next year, which brings up the real question: Is it better to wait or buy now?

Here’s the tradeoff

If you’re waiting for 6%, so is everyone else. And once rates dip closer to that point, more buyers will flood the market, driving up competition, shrinking your options, and likely pushing home prices higher. As NAR explains:

“Home buyers wishing for lower mortgage interest rates may eventually get their wish, but for now, they’ll have to decide whether it’s better to wait or jump into the market.”

Why Today’s Market May Be Your Opportunity

There are unique advantages for buyers right now that could disappear when demand picks back up:

• Inventory has improved = more homes to choose from

• Price growth has cooled = more realistic pricing

• Negotiating power is stronger = the chance to secure a better deal

That’s why NAR also points out:

“Buyers who are holding out for lower mortgage rates may be missing a key opening in the market.”

Bottom Line

Rates aren’t expected to reach 6% this year and when they do, you’ll likely be competing with a surge of other buyers. If you want to shop with less pressure and more room to negotiate, the opportunity is already here.

Call me, Teresa Hill, for trusted guidance on navigating today’s housing market. Let’s talk about whether now is the right time for you to make a move and how I can help you find the best deal.

*Information sourced from Fannie Mae, MBA, Wells Fargo, NAR, Realtor.com, & Keeping Current Matters