Everyone Makes This Mistake When Interest Rates Drop

Real Estate

Take a guess.

Close.

They were around 7.26%.

Today, the average 30-year fixed mortgage rate is hovering near its lowest level in almost three years. That shift alone has made a meaningful difference for buyers. On the same home, the average buyer today is paying about $330 less per month than they would have a year ago.

That’s real money. Real relief.

And yet, this is where most people make the same mistake every single time rates drop.

The Biggest Mistake Buyers Make When Rates Go Down

They wait.

They wait to see if rates will go just a little lower before making a move.

On the surface, that feels logical. Why not hold out for the best possible rate?

Here’s the problem: no one can predict where rates are going.

Not economists.
Not the media.
Not even the Federal Reserve.

In fact, here’s a perfect example.

When Expectations Get It Wrong

In 2024, the Fed cut rates three times. Most people assumed mortgage rates would follow and continue to drop.

Instead, mortgage rates actually rose in early 2025.

The opposite of what everyone expected.

This happens more often than people realize. Mortgage rates don’t move in straight lines, and they don’t always respond the way headlines suggest they should.

Waiting for the “perfect” rate often means missing real opportunities—homes you would have loved, leverage you could have used, or monthly savings you could already be enjoying.

What Actually Matters More Than Timing the Market

The buyers who tend to win aren’t the ones trying to time the bottom.

They’re the ones who:

Buy when the numbers make sense for their life
Lock in payments they’re comfortable with
Stay flexible and informed
Understand that rates can be refinanced, but missed opportunities can’t always be recovered

Right now, all eyes are on interest rates, and the conversation will only get louder in the coming weeks.

As always, I’ll keep you informed as things shift.

P.S. Lower rates don’t magically fix affordability—but every little bit helps. And if your plans change, questions come up, or you want to talk through options, reach out anytime.