As of late August, 15-year mortgage rates are hovering around 5.69% and 30-year mortgage rates around 6.58%, according to Freddie Mac. Just 10 weeks ago, 15-year loans topped 6% and 30-year loans neared 7%.
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Meanwhile, Realtor.com reports that housing inventory has risen 20.9% over the past year. Even better for buyers, supply continues to grow, signaling a budding buyer’s market.
That leaves prospective homeowners with a dilemma: should you wait for rates to fall further and inventory to rise higher in 2026, or should you buy now in today’s improving market?
Why Buy Now
Buyers have strong reasons to act now — and some reasons to wait. But while the reasons to wait often depend on individual circumstances, the arguments for buying apply more broadly.
Lower Rates Drive Up Prices
Imagine that rates do start dropping fast. That makes homes more affordable monthly, so buyers immediately start making higher offers to bid out competitors.
“You can’t wait for the ‘perfect market,'” said Austin Glanzer, real estate investor and owner of 717HomeBuyers. “Sure, rates might come down in 2026, but historically that means prices will jump accordingly.”
Instead, he urges buyers to look for other ways to offset their housing costs. “Explore house hacking, buying a property with an extra unit to rent out. Don’t just wait on the Fed; take control of your own affordability.”
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Don’t Time the Market
The best-informed economists in the world can’t accurately predict the timing of market cycles. If they can’t do it, you definitely can’t.
Professional property buyer Cameron Love of StrykCam urges homebuyers to focus on their own needs, not macroeconomic trends out of their control. “Don’t try to time the market — focus on buying a home that fits your budget and needs today. You can always refinance later if rates drop.”
Missed Opportunities
You can wait on the sidelines forever for a combination of low interest rates and low home prices. Meanwhile, many ideal homes would pass you by, and you’d continue renting.
“Waiting often means paying more later, not just in price, but in lost opportunity,” said Ryan Hess, owner of title company Capstone Land Transfer. That missed opportunity includes both time living in your own home, that you customized to meet your needs, and also lost appreciation as prices continue to rise over time.
Why Wait Until 2026
Still, there are good reasons for some buyers to wait — especially if they need to improve their financial footing before taking on a mortgage.
You Need More Savings
By contorting your finances, you might technically qualify for a mortgage to buy now. But at what cost?
“If stretching to buy now leaves you nothing for repairs, taxes or emergencies, then consider saving a deeper cash cushion before buying,” said Jacob Naig, real estate agent and investor of We Buy Houses In DesMoines. “First-time homebuyers often fail to understand the ongoing costs of ownership, from maintenance to jumps in homeowners’ insurance and property taxes.”
Your Credit Needs Improvement
If you currently have a 650 credit score and credit repair consultants can get you to 720 over the next year, you can qualify for a much lower rate by waiting.
For that matter, you may also qualify for a lower down payment without having to resort to an FHA loan. Aim for a conforming loan from Fannie Mae or Freddie Mac, which lets you drop private mortgage insurance (PMI) after you pay your balance below 80% of your home’s value. In contrast, FHA loans force you to keep paying for mortgage insurance for the entire life of your loan.
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This article originally appeared on GOBankingRates.com: Mortgage Rates Drop to 6% and Below — Should You Buy Now or Wait Until 2026?
