" alt="GATELY Properties" />
Would-be homebuyers aren’t sitting on the sidelines because they don’t want to buy. They’re sitting out because they think they can’t.
The Credit Score Myth That’s Holding Would-Be Buyers Back
How To Find the Best Deal Possible on a Home Right Now
Want to know how to find the best deal possible in today’s housing market?
Why So Many People Are Thankful They Bought a Home This Year
Homebuyers are weighing their options right now, and they certainly have a lot on their minds.
Why Buying a Home Still Pays Off in the Long Run
Renting can feel much less expensive and much simpler than buying a home, especially right now.
Most Experts Are Not Worried About a Recession
Homebuyers are watching the economy closely, and for good reason.
Would You Let $80 a Month Hold You Back from Buying a Home?
A lot of buyers are stuck in “wait and see” mode right now. They’re watching rates hover a little above 6% and thinking, I’ll buy once they hit the 5s. Because who doesn’t want a better rate?
But here’s the thing: that 5.99% number might not save you as much as you think.
Affordability is still a challenge. There’s no question about that. But the market has given savvy buyers a head start. Mortgage rates have already come down over the past few months. And the drop we’ve seen saves you more than you’d think.
How Much You’ve Already Saved, Without Realizing It
Let’s put some real numbers to it. Rates peaked for the year in May when they inched above 7%. But since then, they’ve been slowly declining. Now, they’re sitting in the low 6s. And while that may not sound like a big deal, that change translates to real dollars.
According to data coming out of Redfin, the typical monthly payment on a $400,000 home is already down almost $400 since May.
That means if you’re buying a home now, you’re saving hundreds of dollars every month compared to what you would have been able to get earlier this spring. That’s real money that makes a real difference for buyers who paused their plans because they thought homeownership was out of reach.
And while it may be tempting to wait even longer to see bigger savings, that’s a gamble that could cost you. Here’s why.
Where Experts Say Rates Are Headed
For starters, most experts say mortgage rates are likely to stay pretty much where we are today throughout 2026. So, there’s no guarantee we’ll see a rate much lower than what we have now. Only one expert forecaster is saying rates could fall into the upper 5s next year (see graph below):
And even if rates do dip below 6%, the extra savings you’re holding out for won’t move the needle as much as you might expect.
The Real Math Behind a 5.99% Rate
Let’s break it down. If rates come down to 5.99% from where they’ve been lately that’s a difference of only about $80 a month on an average priced home – give or take a bit based on your price point and the rate your lender quotes you (see chart below):
Eighty dollars. That’s it. And for the typical family, that’s about one dinner out (or one dinner in, if you have it delivered). That’s not enough to change the game for most buyers. But the savings of nearly $400 we already have compared to when you paused your search in the spring? That might be.
So, the question to ask yourself is this:
Is an extra $80 savings really worth the wait?
Because while you’re holding out for that small dip, the bigger opportunity might be slipping away.
When Rates Fall, Competition Follows
Right now, you have more homes to choose from, sellers who are ready to negotiate to get a deal done, and fewer buyers to compete with. But once rates fall below 6%, buyer mindsets will shift and all of that will change.
The National Association of Realtors (NAR) reports that if rates hit 6%, about 5.5 million more households will be able to afford the median-priced home. Even if only a small fraction of them decide to buy, that could mean hundreds of thousands of buyers getting back into the market.
That creates more competition for you, which would push home prices even higher – maybe high enough to cancel out the extra savings you waited for.
So, if you’re waiting for rates below 6%, just keep in mind… that extra $80 may not be worth it in the grand scheme of things.
Bottom Line
You don’t have to wait for 5.99%. You have the chance to move (and save) right now. So, ask yourself: Would you let $80 hold you back from buying a home?
If you find a home you love and the math makes sense, getting ahead may be the best strategy. Connect with an agent or lender to run your numbers. That way you can see what you’re working with in your market.
Thought the Market Passed You By? Think Again.
If you stepped back from your home search over the past few years, you’re not alone – and you’re definitely not out of options. In fact, now might be the ideal time to take another look. With more homes to choose from, prices leveling off in many areas, and mortgage rates easing, today’s market is offering something you haven’t had in a while: options.
Experts agree, buyers are in a better spot right now than they’ve been in quite a long time. Here’s what they have to say.
Affordability Is Finally Improving
Lisa Sturtevant, Chief Economist at Bright MLS, says affordability is finally starting to turn the corner:
“Slower price growth coupled with a slight drop in mortgage rates will improve affordability and create a window for some buyers to get into the market.”
Mortgage rates have eased from their recent highs, price growth has slowed, and that one-two combo is making homes more affordable than they’ve been in months.
There Are More Homes on The Market
And a big reason prices are easing is because there are more homes on the market. According to the latest from Realtor.com, there are 17% more homes for sale today than there were at this time last year. That means more options, less competition with other buyers, and a chance to find the space that actually works for you.
Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), shares:
“Homebuyers are in the best position in more than five years to find the right home and negotiate for a better price. Current inventory is at its highest since May 2020, during the COVID lockdown.”
Take a look at the numbers.
As Yun notes, inventory is up everywhere. Compared to this time last year, every region of the country has more homes on the market than at this time last year (see graph below):
That translates to more homes to choose from, whether you’re looking for a bigger backyard, a shorter commute, or finally ditching your rental.
But not all markets are the same…
When you compare current inventory growth to pre-pandemic norms (2017–2019), the picture changes a bit, depending on where you are (see graph below):
The green bars show where inventory has fully recovered (and even grown above pre-pandemic levels) in the South and the West. Supply, however, is still tighter in the Northeast and Midwest, as shown in the red bars, where inventory is still below normal.
And here’s why that’s still a win everywhere.
When you step back and look at the bigger picture, with inventory up in every region, that means more choices everywhere, even if some areas have more homes for sale than others.
And with fewer buyers in the market and more homes for sale, sellers are willing to negotiate to get a deal done.
All of that adds up to a win for today’s buyers.
And it’s also why working with a local expert really makes a difference. What’s happening in your zip code or neighborhood might look different than the national or regional trend. But the overall takeaway is clear: with more homes on the market, buyers have more leverage than they did a year or more ago.
So, if you stepped away from your search because things felt too competitive, too pricey, you were worried about finding a home, or it was all just too much to process, this could be your moment to take another look.
And if you’re not quite ready to go all in, that’s okay too. You can start by planning ahead. That means working with a trusted agent who can help you break down your budget, narrow your search, and make sure you’re prepped and ready when the right home hits the market.
Bottom Line
Want to know what’s happening in your local market? Reach out to a trusted real estate agent and ask for a custom overview of what’s available right now, so you can learn how to be ready when the timing is right for you.
Because this isn’t 2021.
This isn’t even 2023 or 2024.
This is a new market – and you might be surprised by what you find.
Why You Don’t Need To Be Afraid of Today’s Mortgage Rates
Mortgage rates have been the monster under the bed for a while. Every time they tick up, people flinch and say, “Maybe I’ll wait.” But here’s the twist. Waiting for that perfect 5-point-something rate could end up haunting your wallet later.
The Magic Number
According to the National Association of Realtors (NAR):
“. . . a 30-year fixed rate mortgage of 6% would make the median-priced home affordable for about 5.5 million more households—including 1.6 million renters. If rates were to hit that magic number, it’s likely that about 10%—or 550,000—of those additional households would buy a home over the next 12 or 18 months.”
When the market hits that mortgage rate sweet spot, as expert forecasters are starting to say is more likely in 2026, the psychological shift to lower rates will kick in for more of today’s hopeful buyers. That will unleash some pent-up demand that’s been waiting on the sidelines, and the increase in activity will cause prices to rise.
And while a 5.99% rate might sound like a big win, if you’re waiting for that number to make your move, it might not actually save you as much as you think. Here’s how the math looks when you run the numbers (see chart below):
On a $400,000 mortgage, the difference between today’s rate (around 6.2%) and 5.99% is roughly $50 a month. That’s less than many people spend on weekly coffee runs or occasional DoorDash orders. And as prices tick up with more buyers in the market, that could quickly negate any of your potential savings.
So, if you’re waiting for 5.99%, that difference might not be worth missing out on today’s opportunities, like having more homes to choose from, better negotiation leverage with today’s sellers, and fewer buyers out there looking for the same houses.
Because the reality is, those benefits start to slip away when more buyers begin to make their moves – and a rate under 6% is exactly they’re waiting for.
Why Acting Now Makes Sense
Jessica Lautz, Deputy Chief Economist and VP of Research at NAR, says:
“Over the last 5 weeks, mortgage rates have averaged 6.31%. This has provided savvy buyers a sweet spot to reexamine the home search process with more inventory, widening their choices.”
And like Matt Vernon, Head of Retail Lending at Bank of America, notes:
“Rather than waiting it out for a rate that they like better, hopeful homebuyers should assess their personal financial situation—if the house is right for them, and the upfront and monthly payments are affordable, it could be the right chance to make a move.”
Bottom Line
If moving at today’s rate scares you, remember, waiting doesn’t always pay off. Once rates dip below 6%, as some experts project they’ll do next year, more buyers (and higher prices) will be back.
So, don’t be afraid of today’s mortgage rates. Because if you’re ready, this might just be your chance to make a move before the market wakes up again.
The $280 Shift in Affordability Every Homebuyer Should Know
If you paused your plans to move because of high rates or prices, it may finally be time to take a second look at your numbers. Affordability is improving in 39 of the top 50 markets, according to First American. And that’s the 5th straight month where buying a home has started to get a little bit easier.
Let’s break this down into real dollars, so you can see the difference this could make for you (and your move).
Monthly Payments Are Coming Down
One of the clearest signs of this shift is in monthly payments. The latest data from Redfin shows mortgage payments on a median-priced home are now $283 lower than they were just a few months ago (see graph below):
This kind of monthly savings adds up fast, and totals nearly $3,400 over the course of a year.
While this isn’t enough to completely change the affordability game overnight, think about it this way. When you’re putting together a homebuying budget, a few hundred dollars could be the difference between being comfortable buying and feeling like money’s a bit tight.
And from a home-search perspective, it could even be enough to change the price point you can look at. According to Redfin:
“A borrower with a $3,000 monthly budget can now afford a $468,000 home, about $22,000 more than in June.”
And that’s a big deal if you haven’t found a home you love in your price range yet. It gives you a little more flexibility to find the one that’s right for you.
Either way, that’s a big win.
What’s Behind the Shift?
Two key factors are working in your favor right now:
- Mortgage rates have eased from their high earlier this year
- Home price growth is slowing in many markets
Both of those things help your bottom line and give you a bit of breathing room if you’re buying a home. As Andy Walden, Head of Mortgage and Housing Market Research at ICE Mortgage Technology, says:
“The recent pullback in rates has created a tailwind for both homebuyers and existing borrowers. We’re seeing affordability at a 2.5-year high . . .”
Whether you’re a first-time homebuyer or someone looking to move-up into a bigger house, the shifts happening this year could make your move possible. Connect with a trusted agent or lender to see what your monthly payment would look like at today’s rates.
For you, the savings could be the difference between “not yet” and “let’s go.”
Bottom Line
Affordability is improving in many markets. And that resets the math on your move.
If you’ve been sitting on the sidelines, this is your cue to start looking again. Connect with a local agent or trusted lender to run the numbers together so you can get a rough estimate of how much more buying power you may have than you did just a few months ago.
Why Experts Say Mortgage Rates Should Ease Over the Next Year
You want mortgage rates to fall – and they’ve started to. But is it going to last? And how low will they go?
Experts say there’s room for rates to come down even more over the next year. And one of the leading indicators to watch is the 10-year treasury yield. Here’s why.
The Link Between Mortgage Rates and the 10-Year Treasury Yield
For over 50 years, the 30-year fixed mortgage rate has closely followed the movement of the 10-year treasury yield, which is a widely watched benchmark for long-term interest rates (see graph below):
When the treasury yield climbs, mortgage rates tend to follow. And when the yield falls, mortgage rates typically come down.
It’s been a predictable pattern for over 50 years. So predictable, that there’s a number experts consider normal for the gap between the two. It’s known as the spread, and it usually averages about 1.76 percentage points, or what you sometimes hear as 176 basis points.
The Spread Is Shrinking
Over the past couple of years, though, that spread has been much wider than normal. Why? Think of the spread as a measure of fear in the market. When there’s lingering uncertainty in the economy, the gap widens beyond its usual norm. That’s one of the reasons why mortgage rates have been unusually high over the past few years.
But here’s a sign for optimism. Even though there’s still some lingering uncertainty related to the economy, that spread is starting to shrink as the path forward is becoming clearer (see graph below):
And that opens the door for mortgage rates to come down even more. As a recent article from Redfin explains:
“A lower mortgage spread equals lower mortgage rates. If the spread continues to decline, mortgage rates could fall more than they already have.”
The 10-Year Treasury Yield Is Expected To Decline
It’s not just the spread, though. The 10-year treasury yield itself is also forecast to come down in the months ahead. So, when you combine a lower yield with a narrowing spread, you have two key forces potentially pushing mortgage rates down going into next year.
This long-term relationship is a big reason why you see experts currently projecting mortgage rates will ease, with a fringe possibility they’ll hit the upper 5s toward the end of next year.
Here’s how it works. Take the 10-year treasury yield, which is sitting at about 4.09% at the time this article is being written, and then add the average spread of 1.76%. From there, you’d expect mortgage rates to be around 5.85% (see graph below):
But remember, all of that can change as the economy shifts. And know for certain that there will be ups and downs along the way.
How these dynamics play out will depend on where the economy, the job market, inflation, and more go from here. But the 2026 outlook is currently expected to be a gradual mortgage rate decline. And as of now, things are starting to move in the right direction.
Bottom Line
Keeping up with all of these shifts can feel overwhelming. That’s why having an experienced agent or lender on your side matters. They’ll do the heavy lifting for you.
If you want real-time updates on mortgage rates, reach out to a trusted agent or lender who can keep you in the loop and help you plan your next move.