Why Waiting for Perfect Rates Can Cost More Than You Think

Mortgage rates have held steady through most of October, with 30-year fixed rates hovering in the mid-6% range. Many buyers are sitting on the sidelines, hoping for a “perfect” rate drop before jumping in. But what most don’t realize is that waiting often ends up costing more — even if rates move slightly lower later on.

The Math Behind “Waiting It Out”

Let’s take a simple example.A buyer looking at a $700,000 home today with 10% down at 6.5% has a principal and interest payment of roughly $3,980 per month.

If they wait six months hoping for a 0.5% drop — but home prices rise just 3% in that time (a modest gain in many markets) — that same home costs $721,000, and the monthly payment is still around $3,950 after accounting for the higher price and smaller rate drop.

The takeaway? Small rate improvements rarely offset price appreciation or lost equity. The buyers who move now — and refinance later — typically end up ahead.

Program Tip: Marry the Home, Date the Rate

The phrase gets overused, but it’s true. Buyers today can take advantage of temporary buydowns or no-cost refinance programs that make it easier to manage payments now and restructure later. A 2/1 buydown, for example, can reduce payments by $600–$800 per month in the first year — often funded by seller credits.

What Smart Buyers Are Doing

• Securing the home now while inventory and competition are low

• Negotiating seller concessions to offset costs or fund buydowns

• Locking in peace of mind with a refinance plan ready when the next window opens

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Timing the market is speculation. Structuring it smartly is strategy.

If you’d like to review your current scenario or see how a buydown or refinance strategy might save you money, you can start here:

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