If you’ve been sitting on the sidelines waiting for mortgage rates to drop before buying a home, you’re not alone. We talk to prospective buyers all the time who are hoping for that perfect moment, when rates dip and suddenly everything feels more affordable.
We get it. No one wants to feel like they’re overpaying, and compared to a few years ago, today’s rates are higher. For some, this has meant adjusting their expectations or even pausing their search for their dream home.
But here’s the thing: waiting for rates to drop might end up costing you more than jumping in now.
Because no matter what the market is doing—or what experts predict might happen next—one thing is clear: home prices and rents are still going up. And every month you wait is a missed opportunity to build equity and take control of your financial future.
Home Prices Are Still Rising
Even as rates have increased, home prices in many areas continue to rise. That’s because there’s a lot of demand and not nearly enough homes to go around in every market. Though inventory is growing, it’s growing unevenly. According to data from Realtor.com, the Western US has seen a 40.9% increase in active listings compared to the same time last year, while numbers in the Northeast show just 19% growth.
Even in the West, home values have remained resilient. While some experts predict slight price dips later this year or into 2026, any decline is likely to be modest rather than the dramatic drop some buyers are hoping for. That means by the time mortgage rates do come down, the home you love could come with a higher price tag—possibly stretching beyond your budget. Additionally, lower rates tend to bring more buyers into the market, which can spark bidding wars and drive prices even higher.
Rent Keeps Going Up—And Builds Zero Wealth
If you’re renting right now, you’re helping someone else build equity—not yourself. And just like home prices, rent prices continue to climb, especially in competitive markets.
Buying a home—especially with a fixed-rate mortgage—offers stability, predictability, and a path to long-term wealth. Even if it’s not your forever home, getting into the market now puts you on the ladder toward owning the home you really want down the line.
You Can Always Refinance Later
Buying now doesn’t mean you’re stuck with your rate forever. You can refinance if (and when) rates drop. In the meantime, you’ll already be a homeowner—gaining equity and benefiting from any appreciation in your home’s value while enjoying predictable and stable monthly payments.
Equity Doesn’t Wait
Let’s say you buy a $500,000 home and its value goes up just 5% over the next year. That’s $25,000 in equity—money in your pocket—just for owning a home. If you stay on the sidelines and wait for rates to drop, you’ll miss out on that wealth-building opportunity.
Worried you don’t have the available funds for a down payment or won’t be able to afford the monthly payments in your area? If you’re a first-time home buyer, there are a number of loan programs available to help open the door to homeownership. From FHA loans to the VA loan program for active-duty military and veterans, you don’t have to put 20% down to buy. Additionally, you may be eligible for special grants in your state, which aren’t limited to first-time buyers. Click here to learn more about low down payment programs and the benefits they can offer to prospective home buyers.
Buying a home is a big decision. Whether it’s your first home or your next home, it’s not something you want to rush into. But waiting for the “perfect” mortgage rate could mean missing out on crucial wealth-building opportunities.
At The Potempa Team, we’re here to guide you through the process with smart, honest advice and custom mortgage strategies tailored to your goals. If you’re thinking a purchase, let’s connect and discuss your options.
You might be a lot closer than you think!
