You’re not alone…and that may not be a good thing.

I hear it all the time: I want to buy a new home, but not until interest rates are below 6%. I get it: we all want to save money. And it’s tough to stomach interest rates in the 6’s, when we remember those historic 2% lows (the days when fear & masks were plentiful and money was practically free.) But the reality is that waiting for rates to drop won’t save you as much as you think - and may very well end up costing you more.

First, let’s do some simple math. Today’s current rate for a 30 year conventional loan (assuming good credit) is hovering around 6.2%. Say you’re looking at a $400k loan, and are ready to jump when interest rates dip under 6. A loan at 5.99% will save you $55 per month.

You might be thinking, “Ok, that’s not a lot, but it’s not nothing.” You’re right. So now let’s look at all of the other factors at play.

(1) You are not the only one waiting. Every agent I know has a list of clients eager to jump into the market with a rate drop. And what happens when there’s an influx of buyers in the market? Housing prices go up - and fast. That $400K house you’ve had your eye on might now be $435K.

(2) You’ll face competitive bidding situations. With that influx of buyers, we’ll start to see multiple offers with escalation clauses. That $435K house might now go for 30 or 40K over asking price. In that scenario, your monthly mortgage payment will be $420 more per month than it would be if you bought that very house now at today’s rates.

(3) A delay in building equity is a delay in building wealth. Home ownership remains the #1 wealth builder in America, and it starts with that first mortgage payment.

Sobering, huh?

It’s hard not to feel wistful for lower rates. While no one can predict interest rates with certainty, most experts agree that rates are unlikely to drop much in 2026. And waiting just might put a hurtin’ on your bank account. (Remember, too, that in the event those rates do drop down the road, you can always refinance.)

Only you can determine when the time is right for you to buy a home. Just make sure you’re looking at it from every angle and make your decision based on your own life and financial circumstances.