The Cost of Waiting & the Myth of Perfect

As we move into the final stretch of 2025, new data has come up from Fannie Mae, ICE, and others. This includes both data on the current market and predictions. Mortgage rates have eased slightly and affordability is better than it’s been in years [ICE]. But many buyers are still holding back, waiting for the “perfect” rate or “perfect” market. Add in Fannie Mae’s recent prediction that rates will go slightly below 6% by the end of 2026, and many are wondering what the right approach is. Here’s why that mindset of waiting for the “perfect” market could cost more than it saves.

The Cost of Waiting

Mortgage rates have dropped from their January peak of 7.04% to around 6.164 for a 30-year fixed loan [As of 10/20/25 Optimal Blue]

Yet many are still waiting for rates to fall below 6%. According to Fannie Mae, that may not happen until late 2026 [Fannie Mae]. Fannie Mae recently predicted that mortgage rates will be at 5.9% by the end of 2026.

Meanwhile, home prices are firming again. According to ICE, annual home price growth rose to +1.2% in September after eight months of slowing. And many predict that continued appreciation of home prices in 2026 – meaning a modest increase in home prices [Fannie Mae] [NAR]. Waiting could mean paying more for the same home. Even if rates drop slightly, it’s possible that people could be looking at equivalent or higher monthly payments based on housing appreciation, rate movement, and competition.

So, waiting can be a risky proposition. Not only is there uncertainty inherent in any predictions, the degree of rate movement combined with housing appreciation may make potential savings minimal.

Another big risk of waiting: increased competition. When rates finally dip below 6%, many predict a surge in buyer activity.

In fact, mortgage application data from September’s rate decreases support the conventional wisdom that as rates go down, buyer activity goes up (Mortgage Bankers Association).

So, waiting for further rate drops means more competition, bidding wars, and potentially higher prices. If you wait for the crowd, you could be buying in a seller’s market, not a buyer’s one.

Acting now, before the rush, could mean better negotiating power, less competition, and more favorable terms. In fact, many buyers are able to leverage seller concessions and buydowns to unlock lower prices and rates. Such options might not be available in a sub-six percent market.

The Myth of Perfect

There’s no such thing as a perfect rate or perfect market. Historically, mortgage rates have averaged around 7–8%, and today’s rates in the mid-6% range are still below long-term norms.

Again, waiting for projected lower rates could be unhelpful depending on home prices and competition (in addition to missing out on missed equity growth).

Instead of chasing perfection, buyers should focus on personal readiness: stable income, manageable debt, and a long-term plan. If the numbers work now, it’s likely a good time to buy.

Working with a loan officer can help you run the numbers on your current situation, and identify the best strategies and options for you.

Conclusion: Is Now a Good Time to Buy A Home?

Affordability is better than it’s been in the last 2.5 years. This is good news for homebuyers. While Fannie Mae’s prediction of rates just below 6 percent by the end of 2026 may tempt some to wait for that time, that approach is risky. The cost of waiting could be steep—both in terms of monthly payments and missed opportunities. It’s also important for anyone considering waiting to zoom out and understand that it is a prediction of a rate decrease of less than half a percent over more than a year.

There’s no perfect rate, and following the crowd could mean paying more. On top of that, today’s market can provide buyers with unique leverage. If you’re financially ready, now may be the best time to make your move.