Homebuyers, Don’t Wait—3% Mortgage Rates Aren’t Coming Back

Rates won't stay high forever, but neither will home prices drop when they do.

Are you still holding out for interest rates to drop back to 3%? I hate to say it, but that window has closed. Most of us became a little too comfortable during the 2020 and 2021 period when interest rates were historically low.

However, those rates weren’t part of any long-term trend. Instead, they were artificially created in response to a global economic crisis. Unless something drastic happens again, it’s highly unlikely we’ll see 3% rates return anytime soon.

If you’re waiting for rates to drop before making a move, this is what you need to remember.

The typical interest rate range falls between 5% and 7%. I know it feels high compared to the past. However, if you look at the last 50 years of real estate history, you’ll see that this range is far more in line with long-term market norms.

"While you’re sitting and waiting for those rates to magically drop, home prices, rent, and equity are still on the move."

That’s why holding out for the “perfect” rate could end up costing you way more in appreciation, rising rents, and lost time in the market. While you’re sitting and waiting for those rates to magically drop, home prices, rent, and equity will keep moving. You could lose a lot compared to if you take action and buy the house now. 

Buy now, refinance later. There’s a saying we use often in real estate: marry the house, date the rate. You’re not really stuck with today’s rate forever. If rates improve later, you can refinance and adjust your mortgage to a better number.

What you can’t do is rewind the clock and recover the equity you missed by waiting. That’s the part most people overlook, and it’s where the real cost adds up.

If you’re tired of sitting on the sidelines, let’s do something about it. Just shoot me a message at katie@living48re.com or call me at 480-415-1341. Let’s build a strategy that works for the market we’re actually in right now.