Buy Now or Wait for Lower Mortgage Rates? The Tradeoff Explained

by Lori Aguirre

Mortgage Rates Hit 6.55% – What It Means for Buyers

Mortgage rates are still a hot topic – and for good reason. After the most recent jobs report came out weaker than expected, the bond market reacted almost instantly. As a result, in early August mortgage rates dropped to their lowest point so far this year — 6.55%.

While that may not sound like a big deal, pretty much every buyer has been waiting for rates to fall. Even a seemingly small drop like this reignites the hope we’re finally going to see rates trending down. But what’s realistic to expect?

What the Experts Say

According to the latest forecasts, rates aren’t expected to fall dramatically anytime soon. Most experts project they’ll stay somewhere in the mid-to-low 6% range through 2026.

In other words, no big changes are expected. But small shifts, like the one we just saw, are still likely.

The Magic Number: 6%

The number most buyers are watching for is 6%. And it’s not just psychological — it has real impact. The National Association of Realtors (NAR) says if rates reach 6%:

5.5 million more households could afford the median-priced home
Roughly 550,000 people would buy a home within 12 to 18 months

That’s a lot of pent-up demand just waiting for the green light.

The Tradeoff of Waiting

If you’re holding out for 6%, remember — a lot of other buyers are too. When rates inch down and more people jump into the market all at once, you could face:

More competition
Fewer choices
Higher prices

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 Now Might Be the Time

Consider the unique window that exists right now:

Inventory is up = more choices
Price growth has slowed = more realistic pricing
More room to negotiate = better deals

These opportunities may go away if rates fall and demand surges.

Bottom Line

Rates aren't expected to hit 6% this year. But when they do, you’ll face more competition. If you want less pressure and more negotiating power, that opportunity is already here — and it might not last for long.

📲 Let’s talk about what’s happening in our area and whether it makes sense to make your move now, before everyone else does.

Original article posted at www.keepingcurrentmatters.com