Should You Wait For Rates to Drop? SPOILER: It may cost you more to wait…

*THIS IS AN OPINION ARTICLE, THAT SPECULATES ON FUTURE MARKETS. USE OR RELIANCE OF ANY OPINIONS CONTAINED ON THIS ARTICLE ARE AT YOUR OWN RISK.

Published March 18, 2024.
Written by Marty Rodriguez

The Rate Watch

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An aerial view of a neighborhood with colorful houses, many with tiled roofs and surrounded by lush green trees.

If you’ve been waiting for mortgage rates to drop before buying a home, I’ve got news for you… Experts say rates will come down but not as much as many buyers hoped.

According to the latest projections, rates are expected to hover around 6.5% by the end of the year (see chart below). While that’s a dip, it’s far from the 5% rates some buyers were holding out for.

Table showing mortgage rate projections for 2025, including rates from Fannie Mae, MBA, Wells Fargo, and the average of all three, with quarterly data from Q1 to Q4.

So, does this mean you should wait? Not necessarily.

Smart buyers are getting into homes NOW using creative financing strategies that can help lower monthly payments today without waiting for the perfect rate. Here are three ways you can do the same:

1. Mortgage Rate Buydowns

Sellers or lenders may offer temporary rate reductions to ease your payments for the first few years, giving you breathing room while waiting for rates to drop.

2. Adjustable-Rate Mortgages (ARMs)

These start with lower rates than traditional 30-year loans. Plus, today’s ARMs are way safer than the risky ones from the early 2000s.

3. Assumable Mortgages

Take over a seller’s existing low-rate mortgage (yes, that’s a thing!). Over 11 million homes qualify for this option—don’t overlook it!

To sum it up…Waiting for rates to plummet could mean missing out on great opportunities. Instead of sitting on the sidelines, let’s explore your options together.

Have questions about referrals or interested in a free home evaluation?
Visit our page or call us at (626) 727-9481.
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Market at a Glance

Glendora, CA - February 2025 Housing Market Update. Here's a quick snapshot of the current market trends:

Text overlay on a bedroom background showing real estate market statistics: 53 active listings, -8.6% from 2024; 26 new listings, -42.2% from 2024; 31 closed sales, +47.6% from 2024; $850K average price, -10.5% from 2024.

Be sure to check out our podcast, Real Talk with Marty, to learn more about real estate, investments, and the current market in Southern California.