What's Happening?
Mortgage rates have dropped to around 6%, with 15-year loans at 5.69% and 30-year loans at 6.58%, according to Freddie Mac. This decrease comes as housing inventory has risen by 20.9% over the past year, signaling a potential buyer's market. Prospective homeowners are faced with the decision of whether to buy now or wait for further rate drops and increased inventory in 2026.
Why It's Important?
Lower mortgage rates make homes more affordable, potentially driving up prices as buyers compete. Real estate experts advise against trying to time the market, suggesting buyers focus on their needs and budget. Waiting could mean missing out on ideal homes and opportunities for appreciation. However, some buyers may benefit from waiting to improve their financial situation, such as increasing savings or improving credit scores.
What's Next?
Buyers must weigh the benefits of purchasing now against the potential advantages of waiting for further rate reductions and increased inventory. Those considering buying should explore options like house hacking to offset costs. The market's future will depend on economic conditions and Federal Reserve actions.
