Don’t Let Today’s Mortgage Rates Scare You

Mortgage rates have been the monster under the bed for many homebuyers lately. Every time they rise, buyers hesitate and say, “Maybe I’ll wait.”

But here’s the real scare: waiting for that perfect five-point-something rate could end up haunting your wallet later.

The “Magic Number” Myth

According to the National Association of Realtors (NAR):

“A 30-year fixed rate mortgage of 6% would make the median-priced home affordable for about 5.5 million more households—including 1.6 million renters. If rates were to hit that magic number, roughly 10%—or 550,000—of those additional households would likely buy within 12 to 18 months.”

When mortgage rates move closer to 6%, as experts predict could happen in 2026, more buyers will likely reenter the market. That influx of demand could drive prices higher—meaning you may save slightly on interest but pay more for the home itself.

The Real Math

On a $400,000 mortgage, the difference between today’s average rate (around 6.2%) and 5.99% is roughly $50 a month.

That’s a modest amount—less than many households spend on weekly coffee runs or meal deliveries. Meanwhile, as more buyers return and prices climb, those potential savings could quickly disappear.

By waiting for a slightly lower rate, you could lose out on today’s advantages—such as greater inventory, stronger negotiation leverage, and less competition.

Why Acting Now Could Pay Off

Jessica Lautz, Deputy Chief Economist and VP of Research at NAR, explains:

“Over the last 5 weeks, mortgage rates have averaged 6.31%. This has provided savvy buyers a sweet spot to reexamine the home search process with more inventory, widening their choices.”

Matt Vernon, Head of Retail Lending at Bank of America, adds:

“Rather than waiting it out for a rate that they like better, hopeful homebuyers should assess their personal financial situation—if the house is right for them, and the upfront and monthly payments are affordable, it could be the right chance to make a move.”

If today’s mortgage rates make you uneasy, remember that waiting doesn’t always work in your favor.

Once rates fall below 6%, more buyers will return to the market, and prices are likely to rise again.

Don’t be afraid of today’s mortgage rates. If the numbers make sense for you, this may be the perfect opportunity to buy before the market heats up again.