Today's Mortgage Rate May Be "Good Enough" Here's Why That Matters

Waiting for the perfect rate? Today's rates are historically reasonable, and here's why acting now could save you more than waiting ever will.

Many buyers are sitting on the sidelines waiting for mortgage rates to drop. But here's the truth: today's rates, while not at the historic lows of 2020-2021, are perfectly reasonable by historical standards and waiting for a slightly lower rate could end up costing you much more than you save.

Putting Today's Rates in Perspective

The 30-year mortgage rate averaged about 8% through the 1990s, 6% through the 2000s, and the historic lows of 2.5-3% during 2020-2021 were an anomaly not the norm. Today's rates in the mid-6% range are actually in line with the long-term average.

The ultra-low rates of 2020-2021 were an emergency response to a global pandemic — not a sustainable baseline. Waiting for those rates to return is like waiting to buy gas at 2020 prices.

The 'Marry the House, Date the Rate' Strategy

This popular saying in real estate carries real wisdom. Your interest rate is temporary you can refinance when rates drop. But your purchase price is permanent. If you wait and prices rise 5%, you'll be paying that higher price even if rates eventually decrease.

Real Numbers on a $350,000 Home

At a 6.5% rate, your monthly principal and interest payment on a $350,000 home is about $2,212. If rates drop to 6% (a meaningful decrease), that payment becomes $2,098 — a savings of $114/month. But if the home price increases to $370,000 during your wait, even at 6%, your payment is $2,218 actually MORE than the original scenario.

The Refinance Safety Net

• Buy now at today's rate and refinance later when rates drop

• Refinancing typically costs 1-2% of the loan amount in closing costs

• Many lenders offer low-cost or no-cost refinancing options

• You keep the lower purchase price while enjoying the lower rate

• VA loans offer the Interest Rate Reduction Refinance Loan (IRRRL) one of the easiest refinances available

Stop Waiting, Start Building Equity

Every month you wait is a month of rent you'll never get back and a month of equity you didn't build. Today's rate is 'good enough' to start your homeownership journey. Let's run the numbers for your specific situation and find the best path forward.

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