If you’re waiting for mortgage rates to drop before buying a home, you might be in for a surprise—one you won’t like. Click the link below to find out why.

If you’re holding off on buying a home because you’re waiting for mortgage rates to drop, you might be making a big mistake. Many buyers think they’re doing the smart thing by waiting, but the reality is that it can cost you more in the long run. Today, I sat down with Trey DelGreco from Movement Mortgage to break down why jumping into the market now might be your best move.

The cost of waiting. The current interest rate is around 6.75%, which is higher than we’re used to. Most buyers will be worried about this, but it is actually a good thing. In today’s market, higher rates actually give you more room to negotiate. Sellers are more motivated, which means you might be able to get them to cover some of your closing costs. That’s a win because you can use that extra cash to buy down your interest rate and lock it in for as low as 3.75%. Doing this could save you thousands over the life of your loan.

What if rates drop next year? We know you're probably thinking: “But what if rates drop next year?” and it's a valid concern. If rates do go down to around 5%, you always have the option to refinance. This means you can still get the best deal on the price of the home right now and refinance later to lock in a lower rate.

“Waiting for rates to drop might shift the advantage to sellers.”

Keep in mind that waiting for rates to drop might shift the advantage to sellers. As more buyers flood the market when rates drop, you’ll be competing with more people for fewer homes. That means prices could rise, and you might not get the same opportunity to negotiate a better deal.

Despite higher interest rates, today’s market still offers plenty of opportunities. Buyers who act now can negotiate better prices with motivated sellers, plus the option to refinance down the road if rates drop. If you’re waiting for rates to drop, you could miss out on the chance to negotiate a great deal today. If you have any questions, feel free to call or text me at (407) 499-8993 or contact Trey DelGreco at (205) 401-6141. We’ll help you navigate the market together to find the best deal.