Castle & Cooke Mortgage
Dec 19, 2025 2:34:52 PM
Maybe. But waiting for rates alone is risky. Rates are unpredictable, and when rates drop, competition often increases. The best plan is to buy when the payment fits your budget and your timing is right.
Rates are easy to focus on because they are visible and constantly discussed. But the rate is only one part of your total cost. Waiting for a lower rate can backfire if home prices rise or inventory tightens.
Many buyers discover this the hard way: a lower rate later does not always mean a cheaper home.
Why rate drops can create new challenges
When rates fall, buyers often re-enter the market. More buyers competing for the same number of homes can lead to:
- higher prices
- more multiple-offer situations
- faster decision windows
- fewer seller concessions
So while the rate might improve, the overall affordability might not.
A smarter approach than “waiting”
Instead of waiting passively, create two plans:
Plan A: Buy now if the payment works.
- Focus on a price point you can truly afford (Melissa - link to our affordability calculator)
- Choose a monthly payment you can live with (Melissa - link to our monthly payment calculator)
- Keep a long-term horizon
Plan B: If rates drop, review options.
- Recalculate payment scenarios
- If you already own a home, consider refinance options (Melissa - link to refi calcuator)
- Adjust strategy if affordability improves meaningfully
This lets you move forward without gambling your timeline.
Solutions if rates are the main obstacle
If rates are making payments uncomfortable, you have options:
- Reduce purchase price to protect monthly payment
- Increase down payment if possible
- Improve credit to access better pricing
- Consider different terms or programs based on goals
- Ask about strategic concessions where available
Helpful links
- For the broader timing decision, read: Should I Buy a House Now or Wait?
- If you are considering buying now and refinancing later, read: Should I Refinance My Mortgage Now?
- If you are still deciding rent vs buy, read: Should I Keep Renting or Buy a Home?
If you want a clear picture of what rates mean for you, start by running a Monthly Payment Calculator, then talk with a mortgage professional about your best path.
