Leave a Message

Thank you for your message. We will be in touch with you shortly.

Think Twice Before Waiting for 3% Mortgage Rates

Think Twice Before Waiting for 3% Mortgage Rates

Last year, the Federal Reserve took action to try to bring down inflation. In response to those efforts, mortgage rates jumped up rapidly from the record lows we saw in 2021, peaking at just over 7% last October. Hopeful buyers experienced a hit to their purchasing power as a result, and some decided to press pause on their plans.

Today, the rate of inflation is starting to drop. And as a result, mortgage rates have dipped below last year’s peak. Sam Khater, Chief Economist at Freddie Macshares:

“While mortgage market activity has significantly shrunk over the last year, inflationary pressures are easing and should lead to lower mortgage rates in 2023.”

That’s potentially great news if you’re a buyer aiming to jump back into the housing market. Any drop in mortgage rates helps boost your purchasing power by bringing down your expected monthly mortgage payment. This means the lower mortgage rates experts forecast this year could be just what you need to reignite your homebuying goals.

While this opens up a window of opportunity for you, remember: you shouldn’t expect rates to drop back down to record lows like we saw in 2021. Experts agree that’s not the range buyers should bank on. Greg McBride, Chief Financial Analyst at Bankrateexplains:

“I think we could be surprised at how much mortgage rates pull back this year. But we’re not going back to 3 percent anytime soon, because inflation is not going back to 2 percent anytime soon.

It’s important to have a realistic vision for what you can expect this year, and that’s where the advice of expert real estate advisors is critical. You may be surprised by the impact even a mild drop in mortgage rates has on your budget. If you’re ready to buy a home now, today’s market presents the opportunity to get a more affordable mortgage rate, find your dream home, and face less competition from other buyers.

Bottom Line

The recent pullback in mortgage rates is great news – but if you’re ready to buy now, holding out for 3% is a mistake. Work with a local lender to learn how today’s rates impact your goals, and let’s connect to explore your options in our area.

Recent Blog Posts

Your Home Looks Amazing,But Buyers Are Walking Away. Here's Why.

You’ve decluttered. You’ve deep cleaned. You’ve even repainted the walls that one perfect shade of neutral. So why aren’t buyers falling in love the moment they walk t… Read more

The Five-Year Rule for Home Price Perspective

Headlines are saying home prices are starting to dip in some markets. And if you’re beginning to second guess your plans based on what you’re hearing in the media, her… Read more

Housing Market Forecasts for the Second Half of 2025

Some Highlights Are you wondering what to expect if you buy or sell a home in the second half of the year? Here’s what the expert forecasts tell you. Mortgage rates a… Read more

📈 Real Estate: #1 Investment for 12 Years Straight

In a recent Gallup poll, real estate was once again voted the best long-term investment in America — for the 12th year in a row.

The #1 Thing Sellers Need To Know About Their Asking Price

When you put your house on the market, you want to sell it quickly and for the best price possible; that’s generally the goal. But too many sellers are shooting too hi… Read more

Should I Buy a Home Now or Wait?

At some point, you’ve probably heard the saying: “Yesterday was the best time to buy a home, but the next best time is today.” That’s because homeownership is about t… Read more

The One Question That Could Save You Over $100,000 When Buying a House in Northern NJ

House hunting is exciting—until you start seeing the price tags, interest rates, and all those hidden fees. If you’re getting pre-approved for a mortgage, there’s one … Read more

Here’s What a Recession Could Mean for the Housing Market

Recession talk is all over the news, and the odds of a recession are rising this year. And that leaves people wondering what would happen to the housing market if we d… Read more

Should I Buy a Home Right Now? Experts Say Prices Are Only Going Up

With mortgage rates still stubbornly high and home prices going up, you may be holding out for prices to fall or trying to time the market for that perfect rate. But h… Read more

Hey, before you go!

Want to stay one step ahead of the market? Sign up to be on Dyanna's VIP mailing list to receive exclusive listings, real estate news and a lot more.