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Should You Wait for Interest Rates to Drop?

Mortgage rates have been a hot topic for buyers and sellers in 2025. With rates hovering around 6–7%, many potential buyers are wondering if they should wait for rates to fall before purchasing a home.


The decision isn’t always simple—here’s what to consider before hitting pause on your homeownership plans.


💵 How Interest Rates Impact Buying Power

Higher interest rates mean higher monthly payments. For example, the same $400,000 loan at 3% costs about $1,686/month, while at 7% it costs $2,661/month.

This difference in buying power makes many buyers hesitant to move forward. But waiting for rates to drop has its own risks.


📅 What Happens If You Wait?

  1. Rates Might Not Drop Anytime SoonExperts predict modest changes over the next year, but a return to 3% rates is unlikely.

  2. Home Prices Could RiseEven if rates drop, increased buyer demand could push prices higher—canceling out potential savings.

  3. Lost Equity OpportunityWaiting means delaying equity building. Even at a higher rate, every mortgage payment builds ownership.


✅ Reasons to Buy Now

  • You find a home you love and can comfortably afford.

  • You want to lock in housing costs before prices rise further.

  • You can always refinance later if rates go down.


⏳ Reasons to Wait

  • Your budget feels too tight at current rates.

  • You want more time to save for a down payment or improve credit.

  • You’re not sure where you’ll be living long term.


💡 Smart Strategy: “Marry the Home, Date the Rate”

Buyers can purchase now, secure the home they want, and refinance later if rates improve. This way, you start building equity while still keeping future flexibility.


✅ Final Thoughts

Whether you wait or buy now depends on your financial situation, timeline, and goals. Work with a trusted lender and real estate agent to run the numbers for your specific scenario—and decide what makes sense for you.


Your NorCal Realtor

M&M Real Estate

BRE Lic# 01938720

Cell: Call/Text 707-330-2324


About Scott Sweeney


SweeneySells

Full Time Realtor 13 Years +

Over 100 Families Served

Top 5% Producing Agent

Buying & Listing Specialist

Contract & Negotiation Ninja

CSUS Business & Marketing Graduate 2006


With quickly serving over a 100 families, Scott Sweeney has become a top 5% producing Realtor in the greater Sacramento area who has helped clients from the Bay Area to South Lake Tahoe. Scott has a Bachelor Of Science in Business Administration, with a concentration in Marketing from CSUS. His education, and extensive background in the hospitality, marketing, and real estate industries, have helped Scott to become one of the leading, and most sought after agents in the area.


Reach out to SweeneySells today, and take the first step towards your real estate goals!

📞707-330-2324




Top Producer 2016-2023


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