If you’ve been sitting on the sidelines waiting for mortgage rates to drop, it may be time to reconsider that strategy. While many buyers are holding out for lower rates, today’s numbers are already below the long-term historical average. And every month of delay could mean missing out on something far more powerful than a slightly lower interest rate: equity growth.

Let’s take a closer look.

According to Freddie Mac’s Primary Mortgage Market Survey, the 60-year average for 30-year fixed mortgages is approximately 7.7%. Today’s rates, hovering around 6.25%, are already below that historical benchmark.

Many buyers understandably remember the record-low mortgage rates near 3% during the COVID years. However, those conditions were historically unusual, and it’s unlikely we’ll see them again anytime soon.

When viewed through a long-term lens, today’s rates are not extreme. In fact, they’re below average.

Let’s walk through an example.

Suppose you purchase a $400,000 home today using a 30-year mortgage at 6.25%. Your monthly principal and interest payment would be about $2,462.

If the home appreciates at an average rate of 4% per year, in five years it could be worth approximately $486,600. That represents nearly $87,000 in appreciation alone.

Now add in the equity built through normal loan paydown. Over five years, you could reduce your mortgage balance by approximately $40,000 to $45,000 through amortization.

Combined, that’s more than $125,000 in equity built in just five years.

Now consider the alternative.

If you wait:

• The same home could cost significantly more in five years.

• You miss out on appreciation and amortization during that time.

• If rates do fall, more buyers may re-enter the market, increasing competition and driving prices higher.

Waiting doesn’t freeze the market. It simply delays your participation in it.

Instead of waiting for the “perfect” rate, a more strategic approach may be to buy now, begin building equity immediately, and refinance later if rates decline.

This allows you to:

• Lock in today’s price

• Start building equity right away

• Benefit from appreciation and amortization

• Potentially refinance in the future if conditions improve

It positions you to gain from ownership now rather than hoping for a market shift later.

Waiting for the perfect mortgage rate is a bit like waiting for lightning to strike twice. While lower rates are always appealing, today’s rates are already below the long-term average.

The greater financial risk may not be paying slightly more interest. It may be missing years of equity growth and wealth-building opportunity through homeownership.

If you’re unsure whether buying now makes sense for your situation, I’m happy to run the numbers with you and help you evaluate your options. Timing and strategy matter, and understanding the full picture makes all the difference.