Why Waiting for 3% Mortgage Rates Could Cost You

Let’s talk about something on a lot of minds right now: mortgage rates. If you’ve been holding off on buying property, hoping rates will drop back to the ultra-low 3% range we saw during 2020 and 2021—you’re not alone. But here’s the honest truth: those rates were a rare exception, not a long-term norm.

Those historic lows were the result of emergency policies during a global crisis. Fast-forward to today, and we’re operating in a very different economic environment. As of now, mortgage rates are hovering in the high 6% to low 7% range—and while some softening is expected later this year, experts agree: we’re not going back to 3%.

What This Means for Buyers and Investors

If you’re planning to enter the market—whether to purchase a luxury home, add an income property to your portfolio, or break ground on a new build—waiting for 3% rates could mean missing the boat entirely.

Current forecasts suggest rates might settle around the mid-6% range by year-end, assuming no major economic surprises. That’s still historically reasonable, especially when paired with today’s growing inventory and localized opportunities.

Here in our region, we’re seeing a rise in inventory—especially in up-and-coming neighborhoods undergoing redevelopment. This is opening up unique value-buy opportunities, whether you're looking at single-family homes, luxury condos, or new construction projects.

Why Acting Now Could Pay Off

A lot of smart investors and buyers are making moves now before the next wave of competition hits. When rates ease slightly—as they’re expected to—more buyers will likely jump back in. And when they do, demand goes up, inventory tightens, and you could find yourself in a bidding war.

By stepping in ahead of that surge, you increase your chances of locking in favorable terms, accessing off-market deals, and working with less competition. Plus, buying now means you can always refinance later if rates drop—while benefiting from property appreciation in the meantime.

A Better Strategy: Focus on What You Can Control

Rather than timing the market perfectly (which, let’s be real, no one can do), focus on your financial strategy. That means:

• Improving your credit and buying power

• Exploring creative financing options

• Tapping into programs that can help reduce upfront costs

• Partnering with a real estate professional and lender who understand the local landscape

Whether you're targeting an investment duplex in a growing district or looking to build a custom luxury home, having the right team is key. We can help you navigate today’s lending options, evaluate ROI potential, and identify properties that align with your long-term goals.

Bottom Line

3% mortgage rates are behind us—and that’s okay. The market today still offers solid opportunities for those who understand where things are heading and are ready to act strategically.

Let’s talk about how to position you to win in this market—whether it’s your next investment, your forever home, or a ground-up development project.