Why Waiting for Interest Rates to Drop Below 6% Could Cost You More Than You Think
It’s the question on every buyer’s mind in 2025:
Should I wait until mortgage rates drop below 6% before buying a home?
While it’s tempting to hold out for a lower rate, the reality is that waiting could actually cost you more in the long run. Let’s break down what’s really happening—and why buying now, while the market is quieter, could be your best financial move.
📉 What's the Hype About Rates Dropping?
Mortgage rates have been hovering between 6.25% and 7% for much of 2025. Buyers are hopeful that they’ll soon dip below the psychological threshold of 6%, and many are sitting on the sidelines waiting for that moment.
But here’s the thing: so is everyone else.
Once rates drop into the 5% range, expect a major flood of demand. Buyers who have been waiting for months (even years) will re-enter the market—fast. That creates bidding wars, home price jumps, and a significant drop in seller concessions.
⚠️ The Cost of Waiting: What Buyers Need to Know
Here’s what could happen if you wait for rates to drop:
1. Increased Competition
When rates fall, buyer demand surges.
More buyers = more bidding wars = higher home prices.
2. Loss of Negotiation Power
Today’s market is more balanced—or even leaning slightly toward buyers.
In a slower market, sellers are more willing to offer concessions like closing costs, rate buydowns, or price reductions.
When demand spikes, those incentives disappear.
3. Home Prices Rise Faster Than Rates Fall
Even a 1% drop in rates might not offset the increased home price due to demand.
For example, a $450,000 home today could jump to $480,000 in a competitive market—wiping out any savings from a slightly lower interest rate.
💡 Why Buying Now Could Be a Smarter Move
Let’s look at what’s available to smart buyers in today’s market:
✅ Seller Concessions Are on the Table
Many sellers are offering rate buydowns, credits toward closing costs, or repair budgets.
These can reduce your upfront cash outlay and monthly payments.
✅ Less Competition = More Choices
Fewer buyers means you can take your time, negotiate stronger terms, and avoid overbidding.
✅ You Can Always Refinance Later
A saying we stand by: "Marry the house, date the rate."
You can lock in a great home now and refinance when rates fall—without the stress of competing in a heated market.
📊 Quick Example
ScenarioBuy Now @ 6.75%Wait and Buy Later @ 5.75%Purchase Price$450,000$475,000 (due to price increases)Down Payment (10%)$45,000$47,500Monthly P&I Payment~$2,621~$2,486Monthly Savings—$135BUT…No bidding wars, seller paid closing costs, price discountsLikely bidding wars, fewer concessions, higher upfront costs
🔑 Final Takeaway
Waiting for interest rates to drop below 6% might feel like a savvy move—but in a market that’s poised to rebound quickly, delaying your purchase could mean paying more later.
If you're financially ready, the current market gives you options, leverage, and value—three things that tend to disappear in a hot seller’s market.
👉 Ready to explore your options?
Let’s talk strategy. I’ll help you:
Find homes where sellers are offering incentives
Connect you with trusted lenders offering rate buydowns
Secure a great home now—and refinance later if rates fall
📞 Monica McCraw | 602.451.7539
📧monica@monicamccraw.com
🌐 www.monicamccraw.com
Helping You Build Wealth Through Real Estate.