If you’re thinking about buying a home, interest rates and timing probably feel like a big deal. You might be wondering how today’s rates compare to where they may be headed. But what if you didn’t need to guess? What if the numbers could give you a clear answer? All you need are two things:

1. Trusted sources to provide sound market predictions. (We did the hard part for you and found those.)
2. A mortgage calculator and some simple math to apply those predictions to your situation.

When you plug in real numbers, a clear picture starts to form. And in many common scenarios, waiting might cost way more than you think.

What Might Happen if You Buy a Home Today?

For this example, we’ll plug in common numbers for the average American homebuyer.

The current national median home price is $410,800 according to the Federal Reserve. As of November 3, the average 30-year fixed mortgage rate is 6.209%, based on data from Optimal Blue.

If you were to buy today with a 3% down payment, which is the minimum required for a 30-year fixed conventional loan, you would need about $12,324.

We plugged those numbers into our mortgage calculator and your monthly principal and interest payment would be approximately $2,443.

Here’s what buying now could look like*:

• Home Price: $410,800
• Down Payment (3%): $12,324
• Monthly P&I Payment: $2,443

*For example purposes only.Not a guarantee. Does not include taxes and insurance; actual payment may be higher.Borrower qualification is required.Reach out to a loan officer for a true rate quote.Rates may not be indicative of current market rates.  

What Might Happen if You Wait One Year?

Now, let’s say you wait until late 2026 to buy, hoping for a better rate. Forecasts suggest you would be right! Fannie Mae predicts 30-year fixed rates may settle around 5.9% by then. That sounds great, right? Let’s dive a bit deeper into the numbers.

Home appreciation is a factor to consider as well. There is a range of 2026 appreciation forecasts that go as high as 7%, and it can vary by market, but let's use a middle-ground national prediction from the National Association of Realtors. They believe home prices will rise 4% over in 2026. Let’s say that the same home that cost $410,800 in 2025 appreciates by 4%, it would now cost $427,232 in 2026.

A 3% down payment on the higher price comes to $12,817. Even with the lower interest rate, your monthly principal and interest payment would be about $2,458.

Because you’re starting fresh, the only equity you’d have is your down payment. You would have missed out on the previous year’s $16,432 in appreciation, plus the principal you could have paid down if you had bought sooner.

Here’s what that looks like*:

• Home Price: $427,232
• Down Payment (3%): $12,817
• Monthly P&I Payment: $2,458

*For example purposes only. Not a guarantee.Does not include taxes and insurance; actual payment may be higher.Borrower qualification is required.Reach out to a loan officer for a true rate quote.Rates may not be indicative of current market rates.

How Does The 2025 Scenario Compare to 2026?

In this scenario, the math is clear. Waiting to buy in 2026 would result in the following:

• The same home would now cost $16,432 more (based on 4% appreciation.) Remember, that is also $16,432 in potential equity lost.
• Your monthly principal and interest payment would be $15 more due to home appreciation even though the interest rate is lower
• You would lose out on 12 months of payments going toward principal. With loan amortization, you would have lost out on $5,268 in potential equity.
• The 3% down payment would be $493 more.

That’s over $21,000 in lost potential equity, not to mention a slightly higher monthly payment.

What Do the Numbers Say for You?

Predictions about future rates and home prices are just that–predictions. We used some of the most reputable ones to show what could happen. This example shows that even if rates do go down next year, that doesn’t always mean buyers will save money.

In fact, buyers in some markets are using today’s conditions to negotiate seller concessions—an advantage that may not be on the table next year.

If you would like a prediction for your specific market and goals, we can run the numbers for you. Fill out the quick form and we’ll go over your personal scenario together.