Should You Buy a Home Now or Wait for Lower Mortgage Rates?

Mortgage rates are on everyone’s mind — and for good reason.

After a weaker-than-expected jobs report in early August, mortgage rates dropped to 6.55%, the lowest level so far in 2025. For many hopeful homebuyers, this was a much-needed sign that rates might finally be trending down.

But before you decide to wait or jump in, let’s break down what the experts are actually predicting.

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What Are Mortgage Rates Expected To Do Next?

If you’re hoping for a big drop in rates — you might be waiting a while.

According to forecasts from Fannie Mae, MBA, and Wells Fargo, most experts agree: rates will likely stay in the mid-to-low 6% range through 2026. Small fluctuations may happen with economic news, but major drops aren’t expected in the near future.

That means today’s rates might be as good as it gets for a while.

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What If Rates Hit 6%?

Here’s where it gets interesting.

According to a new report from the National Association of Realtors (NAR):

• If rates hit 6%, 5.5 million more households could afford the median-priced home.
• Roughly 550,000 people would jump into the market within 12–18 months.

That’s a lot of pent-up demand just waiting for rates to dip slightly.

And if you’re thinking of waiting until rates hit 6%, remember this: so is everyone else.

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The Tradeoff: Wait or Buy Now?

While waiting might feel like the smart play, there are risks involved — especially when it comes to competition and home prices.

Here’s what you gain by buying now:

• More inventory – more homes to choose from
• Slower price growth – more realistic home values
• Negotiating power – less competition = better deals

If you wait for lower rates, that window could slam shut. When demand surges again, sellers will gain the upper hand, and prices may rise.

As NAR puts it:

“Buyers who are holding out for lower mortgage rates may be missing a key opening in the market.”

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Bottom Line

While rates may dip closer to 6% next year, waiting could mean facing higher competition and fewer deals.

If you want more leverage, better pricing, and less stress, now might be the moment to act — before the rest of the market jumps back in.

Let’s connect and talk about your local market. I’ll help you decide whether it’s smarter to move now — or wait for the shift.