Why You Shouldn’t Wait for Interest Rates to Drop to Buy a Home

Should You Wait for Rates to Drop? Here’s the Real Deal

📍 Introduction

Many buyers today are waiting on the sidelines, hoping interest rates will drop before they buy. But here’s the truth: waiting might cost you more in both price and opportunity — especially in high-demand areas like Southern California.

This post breaks down why acting sooner (even with higher rates) may be the smarter financial move — and how VA, FHA, and assumable loan options can help you win now.

📉 The “Wait for Lower Rates” Trap

You’re not alone in thinking, “I’ll wait until rates drop.”But when rates go down:

• Buyer demand surges

• Prices increase

• Competition intensifies

• Bidding wars return

• You may end up paying more overall
  

A lower rate doesn’t help if the home you wanted costs $50,000 more.

💰 Example: Buy Now vs Wait

Let’s compare buying a $600,000 home now at 6.5%, vs waiting a year for 5.5% (but the home jumps to $640,000):

Scenario	Monthly Payment	Total Interest	Down Payment
Buy Now	~$3,800	~$460,000	$0 (VA loan)
Wait 1 Year	~$3,650	~$510,000	$0 (VA loan)

✅ Higher total cost when waiting ✅ You miss 12 months of equity gains ✅ Rents may rise in the meantime

🔑 How to Win Now

• Look for VA or FHA loans with lower entry costs

• Target homes with assumable loans (2–3% rates still exist!)

• Use your BAH to offset higher payments

• Plan to refinance later when rates drop
  

“Date the rate, marry the house.” Lock in the home — and refi the rate later.

💬 Final Thought

No one can time the market perfectly. But the buyers who take action — and use tools like VA benefits or assumptions — are the ones who build wealth sooner, not later.

📞 Wondering what today’s options look like for your budget? We’ll show you homes, payments, and even assumption opportunities. 👉 Request a no-pressure home plan Or reply with your price range — we’ll break down real numbers.