Should You Wait to Buy a Home Until Mortgage Rates Drop?
It’s one of the most common questions I hear: “Should I wait to buy a home until mortgage rates go down?”
At first glance, it seems logical — a lower rate could mean a lower payment. But here’s the bigger picture: when rates drop, more buyers flood back into the market. That extra demand often drives up home prices, sparks bidding wars, and makes sellers less willing to negotiate on repairs or closing costs.
So while you might save a little on interest if rates dip, you could end up paying more for the house itself — or lose out on the chance to negotiate better terms while competition is lighter.
That’s why many smart buyers are acting now. They’re taking advantage of a calmer market, getting homes at better prices, and negotiating credits or repairs. Then, if rates drop later, they simply refinance to lower their monthly payment.
It’s a strategy that gives you the best of both worlds: buy the right home at the right price today, and improve your financing if the market shifts tomorrow. Because one thing’s for sure — you can always change your rate. But you can’t change the price you paid.
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