Should You Hold Out for Lower Interest Rates Before Buying a House?

Published on Jun 03, 2025 | Interest Rates
Should You Hold Out for Lower Interest Rates Before Buying a House?
Should You Hold Out for Lower Interest Rates Before Buying a House?

Is Now the Right Time to Buy a Home?

Buying a home today can feel uncertain. On one hand, finding the right property is exciting. On the other, high interest rates can make you second-guess your timing. So, should you buy now or wait? The answer depends on several factors, and we’ll break them down clearly for you.

Understanding How Mortgage Rates Work

Mortgage rates aren’t decided by a single person or simple rule. Instead, they depend on a variety of economic conditions, including:

  • The 10-year Treasury yield
  • Current inflation levels
  • The strength of the overall economy
  • Supply and demand in the housing market

These factors work together to influence the rates lenders offer.

A Look Back at Mortgage Rates Over Time

Here’s a quick snapshot of how mortgage rates have changed over the decades:

  • 1981: Rates reached a record high of 18.63%
  • 1990s–2000s: Rates gradually declined
  • 2010s: Rates reached historically low levels
  • 2022–2024: Rates rose above 7%

Even though current rates are higher than in recent years, they are still lower than the peaks of previous decades.

Should You Wait or Buy Now?

Trying to predict when rates will go down is difficult. While you're waiting, home prices may continue to rise. That could make buying even more expensive later. Instead of only focusing on interest rates, consider these additional points:

Other Factors to Think About

  • Rent vs. Buy: Is renting costing you more in the long run?
  • Financial Readiness: Do you have a stable income, solid credit, and savings?
  • Future Opportunities: If rates fall later, you can refinance your mortgage.

Homeownership Is a Long-Term Decision

Buying a home isn’t just about numbers—it's about investing in your future and creating stability for yourself and your family. Homeownership gives you more control over your space and your financial path. Focusing only on interest rates can cause you to overlook the long-term benefits of owning a home.

Take the First Step Today

Homeownership may be closer than you think. With the right guidance, you can move forward confidently—no matter what the rates are today.

Ready to take the next step toward homeownership? Let’s connect and explore your mortgage options today.