Are You Really Saving Money by Waiting to Buy a Home?

Why Waiting Out the Market Could Cost You More in the Long Run

If you're considering buying a home and waiting for rates to fall, it might feel like you're being financially strategic—but the truth is, you're betting against the market twice. Here's what every buyer needs to understand about mortgage rate dynamics: there’s no “waiting it out” without paying for it.

🔁 The See-Saw of Rates and Prices

The relationship between interest rates and home prices is more than just financial theory—it’s market reality. Let’s break it down:

• When rates drop, prices rise.
  Why? Because lower interest rates increase buying power. More people can afford higher loan amounts, so demand goes up—and so do home prices. Sellers know this, and they price accordingly.

• When rates rise, payments rise.
  Even if home prices stabilize or slightly dip, the cost of borrowing goes up. A 1% increase in mortgage rates could mean hundreds of extra dollars each month in your mortgage payment.

Either scenario leads to paying more over time—whether through higher principal or higher interest.

📊 A Tale of Two Buyers

Let’s say Buyer A bought a $400,000 home at 6.5% interest last year. Buyer B waited, hoping for lower rates. A year later, rates dropped to 5.5%, but that same home now costs $440,000 due to increased demand.

Buyer A can refinance when rates fall and keep the lower purchase price.

Buyer B? They’re now paying more for the house and closing costs—and the refinance advantage is already baked into the higher price.

Bottom line: You can refinance a rate. You can’t refinance a purchase price.

🧠 Don’t Let the Market Outsmart You

Homeownership isn't just about timing the market—it's about smart financial planning. If you're renting, you're already paying someone else’s mortgage. If you're waiting for the “perfect” rate or deal, you may end up priced out altogether.

✅ So What Should You Do?

• Get pre-approved now. Know your numbers and lock in your budget.

• Watch the market, but don’t freeze. Be ready to act when the right home shows up.

• Work with a pro. Not all lenders are created equal. You need access to options.

💬 Let’s Make Your Next Move Smarter—Together.

Kelly Nadeau, NMLS #1027618
Ray Nadeau, NMLS #1027617
Licensed in Florida
📱 Call or Text: (321) 321-9455
🌐 https://nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/1660690

Empowered by NEXA Mortgage, LLC
🏛️ NMLS #1660690 | Equal Housing Lender
🏢 5559 S Sossaman Rd, Suite 1-101, Mesa, AZ 85212

This is not a commitment to lend. All loans are subject to credit approval, underwriting guidelines, and availability. Terms and conditions may apply. Rates and programs are subject to change without notice.