Should You Wait for Mortgage Rates to Drop Before Buying

A recent Zillow analysis revealed that for a median-income family to afford a typical U.S. home, either:

• Home values would need to fall by 18% or

• Mortgage rates would need to drop from today’s average 6.74% to just 4.43%.

That’s a steep—and unlikely—shift.

Why Waiting May Cost You More

According to Zillow, there’s “no realistic path” for rates or prices to drop to those levels without a major economic disruption, such as widespread unemployment or stalled income growth.

The typical U.S. mortgage payment today is nearly $1,000 higher per month compared to pre-pandemic levels. Unless your income has increased by that same amount, the math only gets tougher the longer you wait.

In Los Angeles homes remain unaffordable even if rates dropped to zero. Taxes, insurance, and upkeep alone consume more than 10% of median income.

The real issue isn’t just rates or prices—it’s a long-standing housing supply shortage. Without more construction to meet demand, affordability challenges will persist.

The Bottom Line

• Rates aren’t expected to fall significantly anytime soon.

• Home prices aren’t crashing—and in many markets, they continue to rise.

• Waiting could mean you’ll pay more later, not less.

Instead of trying to time the market, it’s smarter to understand what you can afford now and lock in a strategy that works for your financial goals.

At Peregrine Financial, we specialize in helping buyers navigate today’s market with confidence. Whether you’re a first-time homebuyer or looking to upgrade, our team can:

✅ Evaluate what you can comfortably afford

✅ Secure competitive loan options

✅ Guide you through the buying process step by step

Contact us today for a free consultation.

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