2 min read
If you've been putting your home search on hold because you are waiting for mortgage rates to come down, you are certainly not alone.
But before you decide to wait, it may be worth looking at the bigger picture.
No one knows exactly where mortgage rates will go next. Current forecasts suggest rates could remain relatively steady rather than experiencing a dramatic decline in the near term.
Here are a few things to consider.
1. Lower Rates Aren’t Guaranteed
It’s understandable to hope mortgage rates will drop significantly. However, forecasts from organizations such as Fannie Mae, the Mortgage Bankers Association and Wells Fargo have projected rates remaining in the low-to-mid 6% range through at least mid-2027. (These forecasts are estimates only and may change based on economic and market conditions).
Source: Freddie Mac, Housing Forecast, July 2026 (Forecasts are estimates based on information available at the time published and are subject to change. Actual mortgage rates may differ materially).
Mortgage rates are influenced by many factors, including inflation, Treasury yields, economic conditions, Federal Reserve policy and global events.
Forecasts can change, so there’s no way to know exactly where rates will be in the future.
2. Inflation Still Matters
Inflation is one factor that can influence the broader interest-rate environment.
Recent inflation data continues to be closely watched by economists and financial markets. Changes in inflation and expectations for future inflation can affect interest rates over time.
Source: BEA (Bureau of Economic Analysis), U.S. Core PCE Price Index YoY, July 2026
That’s one reason it can be difficult to predict when—or whether—mortgage rates will move significantly lower.
3. Today’s Rates Look Different in Historical Context
The mortgage rates available during the pandemic were historically low.
When you look at a longer history of mortgage rates, today’s rates are not as unusual as they may feel.
Source: Freddie Mac, Primary Mortgage Market Survey, June 2026 (Historical performance is not indicative of future market conditions).
That doesn’t mean a current mortgage payment fits every budget. It simply provides some perspective when deciding whether waiting for a significantly lower rate makes sense for your situation.
What Can You Consider Instead?
If affordability is your biggest concern, there may be several financing or purchasing strategies worth discussing with a lender.
Explore new construction.
Some builders may offer incentives that vary by property, community and timeframe. Ask about the terms and costs before making a decision.
Ask about adjustable-rate mortgages.
Depending on your financial situation and how long you expect to own the home, an ARM may be an option to consider. Be sure to understand how the rate can adjust and what that could mean for future payments. After the initial fixed-rate period, an adjustable-rate mortgage may increase or decrease based on market conditions, which could affect your monthly payment.
Ask about rate buydowns.
Depending on the transaction and loan program, a buyer, seller or builder may be able to contribute toward a temporary or permanent rate reduction. The costs and terms should be carefully reviewed (For temporary buydowns, monthly payments generally increase after the buydown period ends).
Look into assumable mortgages.
Some government-backed loans may be assumable by a qualified buyer (subject to lender or servicer approval and applicable program requirements). If you’re considering this option, a lender can help you understand whether the loan is eligible and what requirements and costs may apply.
The Bottom Line
Waiting for mortgage rates to change is one option—but it isn’t the only thing to consider.
Home prices, inventory, your monthly budget, available financing options, your personal financial situation and how long you plan to own the home can all play a role in the decision.
If buying a home is on your radar, talk with a First Federal Bank Loan Officer about your options. Understanding what may be available can help you make a decision based on your individual circumstances—not simply on where you think mortgage rates might go.
Mortgage rates shown are market averages or forecasts obtained from third-party sources and are not a commitment to lend, lock, or extend credit by First Federal Bank. Available loan programs, rates, fees, terms, and qualification requirements vary and are subject to change.