Should You Wait for Rates to Drop or Buy a Home Now?
With mortgage rates hovering around 6.7% in mid-2025, many buyers are asking: Is it smarter to wait for rates to fall, or should I buy now? The answer depends on your financial readiness, market conditions, and long-term goals
The Case for Waiting
Rates may ease later this year: The Federal Reserve has signaled possible rate cuts in late 2025, which could lead to lower mortgage rates.
Lower rates = lower monthly payments: Even a 1% drop in rates can significantly reduce your long-term interest costs.
More inventory may emerge: If rates fall, more sellers may enter the market, increasing choices.
The Case for Buying Now
Home prices are still rising: National prices have climbed steadily since 2020, and waiting could mean paying more for the same home later.
Competition may intensify: Lower rates often trigger a surge in demand, which can drive prices even higher.
You can refinance later: Buying now locks in today’s home price, and you can refinance if rates drop in the future.
Bottom Line
If you're financially prepared and find a home that fits your needs, buying now may be the better move—especially if you plan to stay long-term and can refinance later. But if your budget is tight or you're not in a rush, waiting could offer better affordability down the line.
