What If Rates Drop? Should You Buy Now or Wait?

It’s the question everyone’s asking (out loud or in their heads):

“Should I wait for rates to drop before buying?”

The answer? It depends — but not on rates.

It depends on your timeline, payment comfort, and how long you plan to hold the home.

Let’s break it down.

Scenario 1: You Wait for Rates to Drop.

• Rates drop 0.5%

• Prices go up 5–8% (due to pent-up demand)

• You now have more competition, more bidding wars, and you’re paying more for the house

• You still need to bring the same (or more) cash to close

You may save a couple hundred per month in interest — but you’re likely paying more in purchase price and losing time in the home.

Scenario 2: You Buy Now, Refi Later.

• You negotiate better terms (possibly credits or price cuts)

• You start building equity sooner

• You lock in the home you want now — not what’s left later

• You refinance when rates drop

This is what savvy buyers — and investors — are doing right now.It’s called Marry the House, Date the Rate — and it works when done strategically.

Here’s What I’m Seeing Right Now:

• Clients buying now are getting credits from sellers

• Some are using 2-1 buydowns to reduce short-term monthly costs

• Others are locking in less competition and choosing the right home — not just the leftovers

One couple I just helped in OC got $11K in seller credit, a 2-1 buydown, and plans to refi in 12–18 months. They moved in last week and are already ahead of the curve.

Agents — This Is a Script You Can Use Today:

“If the house fits your needs and the payment fits your comfort level, we can always refi the rate later. Let’s see what you’d qualify for today.”

That’s how you turn hesitation into movement.

Bottom Line:

If you’re planning to buy and stay put for at least 3–5 years, timing the market perfectly isn’t the goal.

The goal is getting the right home at a manageable monthly cost — then improving the rate later when the opportunity comes.

Let’s apply and map out both scenarios.

APPLY NOW