A lot of buyers are sitting on the sidelines right now, waiting for mortgage rates to come down before they make a move. We think that’s a mistake.

Here’s why this window before rates drop - and before longer-term (i.e. 50 year) mortgages hit the mainstream - may actually be the best time to buy.

1. Rates are lower than they were, but demand is still muted
30-year mortgage rates have come down from their recent highs in the 7s and are now sitting in the mid-6% range. That’s not “cheap money,” but it’s already a meaningful improvement from earlier this year - and it’s taken some pressure off monthly payments.

At the same time, a lot of buyers are still on pause, and many sellers are still cautious. That combination has created a rare moment of relative calm: fewer bidding wars, more negotiable terms, and a little more breathing room to do this thoughtfully instead of frantically.

2. When rates move down, prices usually move up

If and when rates move meaningfully lower from here, two things tend to happen:

• Buyers who have been “waiting for the bottom” all rush back in at the same time.
• The extra buying power from lower payments gets baked into higher prices, especially in markets where inventory is already tight.

In other words, the crowd that’s waiting for lower rates may get exactly what they want on paper - a cheaper payment - only to discover that prices have been bid up and the homes they like now cost more than they do today.

3. The push for longer-term mortgages could add more fuel

There’s also a growing conversation nationally about 40- and even 50-year mortgages as a way to make payments more “affordable.”

On paper, that sounds great. In practice, stretching the term that far lets buyers borrow more for the same monthly payment (albeit, with paying a lot more in interest) which is another way of saying it can push prices higher, especially for entry-level homes and small multi-families. 

If those products become mainstream, you could see another step-up in what buyers are willing (and able) to pay, not a step-down. Longer term mortgages may be a good strategy for more buyers to get into the market at a lower monthly payment, with the intention of refinancing at a later date, when they can afford a higher monthly payment. Overall we are not proponents of paying infinitely more interest to the life of your loan. But, the longer term loans could mean more demand in the market. 

4. The strategy: buy the asset now, fix the financing later

Here’s how we're advising our own clients:

• Buy when the right home and the right math line up, not when the headlines tell you it’s safe.
• Focus on securing a good price on the property in today’s less crowded market.
• Structure the financing so you can refinance later if and when rates move down.

You’re not locked into today’s rate forever. But you are locking in today’s price. If rates drop and the market heats back up, you can refinance your payment — you can’t go back in time and buy the same home for less.

5. What this means for you

This isn’t about FOMO or rushing into something that doesn’t fit your life or your budget.

It is about understanding:

• We’re in a window where prices have not fully adjusted to cheaper borrowing…
• There is serious talk about policy changes and mortgage products that could add more demand…
• And you still have the option to refinance later if the rate environment improves.

If you’ve been on the fence, this is a smart time to at least run the numbers on:

• What you can buy today
• What your monthly payment looks like
• How your payment could change with a future refinance

If you want to talk that through, we're happy to walk you step-by-step through the math for your situation - no pressure, just straight answers.