Let's address the elephant in the room.
Mortgage rates are high.
Freddie Mac's September 17 survey put the average 30-year fixed mortgage at 6.95%, up from
6.76% the previous week.
For buyers who remember 3% mortgages, today's rates can feel almost impossible to accept.
So the natural reaction is:
“I'll wait until rates come back down.”
That sounds reasonable.
But there's one problem.
Nobody knows when that will happen.
What Happens If Rates Fall?
Imagine mortgage rates decline significantly next spring.
Good news, right?
Absolutely.
But thousands of other buyers may have been waiting for exactly the same thing.
Lower rates can improve affordability—but they can also bring more buyers back into the
market.
More buyers can mean:
More competition.
More multiple offers.
Less negotiating leverage.
Fewer seller concessions.
And potentially upward pressure on home prices.
In other words, waiting for one part of the equation to improve doesn't guarantee the entire
equation improves.
What Happens If Rates Don't Fall?
This is the other possibility buyers don't always consider.
What if rates remain near today's levels longer than expected?
What if you wait six months or a year only to discover you're facing roughly the same mortgage
rate on a home that costs more?
Nobody can promise that will happen either.
That's exactly the point.
Waiting is also a decision—and waiting has risks of its own.
Stop Asking Only About the Interest Rate
Instead of asking, “Is 6.95% a good mortgage rate?” consider asking:
“Does buying this particular home at this particular payment make sense for my family?”
Those are two completely different questions.
A good lender can help you understand the full payment, including principal, interest, taxes,
insurance and any HOA expenses.
From there, you can determine whether the payment is comfortable.
Not technically possible.
Not something you can barely squeeze into the budget.
Comfortable.
That's the number that matters.
And What About Refinancing?
You've probably heard someone say:
“Marry the house and date the rate.”
It's catchy, but we would add an important warning.
Never purchase a home assuming you will be able to refinance later.
Rates may fall and refinancing may become attractive. But future rates, property values, lending
guidelines and your personal financial circumstances aren't guaranteed.
A future refinance should be viewed as an opportunity—not the justification for buying a home
you can't comfortably afford today.
Inflation Matters Too
There's another side to higher prices and inflation that doesn't get discussed enough.
Money sitting on the sidelines loses purchasing power when the cost of goods and services
rises.
Real estate is a tangible asset, and research has found that direct real estate can provide
meaningful protection from inflation over longer periods.
Homeownership also allows you to gradually build equity as you pay down a
mortgage—something your monthly rent payment doesn't do for you.
None of this means real estate only goes up. It doesn't.
But historically, owning quality real estate for the long term has been one of the practical ways
households have built and preserved wealth.
The Better Question
We don't think buyers need to love today's mortgage rates.
We certainly don't.
But you don't buy “the market.”
You buy one home.
In one neighborhood.
At one price.
Under one set of circumstances.
And today's slower, more cautious market may sometimes give buyers negotiating opportunities
that disappear when everyone feels confident again.
The goal isn't to wait for the perfect interest rate. The goal is to recognize the right
opportunity when it appears.
If you're considering buying in Fountain Valley or the surrounding Orange County communities,
let the Lily Campbell Team help you run the numbers before deciding to sit on the sidelines.
You may decide waiting makes sense.
Or you may discover that today's market gives you something tomorrow's market won't.
