If you're wondering whether now is the right time to buy a home or refinance your mortgage, you're not alone. With all the headlines about inflation, mortgage rates, housing shortages, and market uncertainty, it’s no surprise that many people are hitting pause.

But here’s the truth: waiting might cost you more — depending on your goals.

Let’s break it down.

Where Mortgage Rates Stand in 2025

As of June 2025, mortgage rates have settled in the 6.5% to 6.9% range for most conventional loans, depending on credit, loan type, and down payment. While this is lower than the 20-year highs we saw in late 2023 (where rates crossed 7.5%), it's still well above the 3% and 4% rates buyers saw during the pandemic years.

So, will rates drop again? Possibly — but not dramatically or quickly.

• The Federal Reserve is signaling gradual rate cuts in late 2025, assuming inflation continues to cool.

• But don’t expect a return to ultra-low rates. Most analysts project rates settling between 5.5% and 6% by the end of 2025 or early 2026.

Source: Mortgage Bankers Association, Fannie Mae Economic & Housing Outlook

What About Home Prices?

Home prices in most markets have held steady or increased modestly, due to a shortage of available homes. Even with higher interest rates, there’s still a lot of buyer demand — especially among millennials and Gen Z entering peak homebuying years.

According to CoreLogic and Zillow data:

• Home prices are up 3% to 5% nationally year over year.

• Inventory remains tight in most metro areas.

• Sellers are less likely to list, since many are sitting on ultra-low mortgage rates.

That means waiting for prices to fall may not be a safe bet — especially in competitive or growing markets.

What Happens If You Wait?

Let’s say you’re hoping rates fall to 5.5% before you buy or refinance.

While you could save on your monthly payment if that happens, here’s what else might change:

• Home prices may rise while you wait, canceling out the benefit of a lower rate.

• More buyers will jump in, increasing competition and possibly driving bidding wars again.

• You’ll miss out on building equity, especially if you’re renting or carrying high-interest debt.

And for refinancers, the same logic applies. If you’re in the 7% range today and can drop into the 6s now, waiting for the "perfect rate" might cost you thousands in the meantime.

So... Should You Wait?

Here’s the real answer: It depends on your personal situation — not just the market.

Ask yourself:

• Can I afford a monthly payment I’m comfortable with right now?

• Am I buying a home for long-term stability, not just short-term savings?

• Could I refinance later if rates drop?

• Am I paying rent or carrying debts at higher interest?

If the answer to any of these is yes, it may make sense to move forward now — and refinance later if rates drop.

Buy Now, Refi Later?

That’s a strategy more buyers are leaning into in 2025.

• Some lenders are offering “refi-ready” programs, waiving future lender fees if you refinance within 1–3 years.

• Temporary buydowns (like 2-1 buydowns) can help reduce your payments for the first couple of years.

• And if you lock in now, you’re protected from further rate hikes — but can always refinance if rates fall.

Bottom Line

If you’re waiting for the “perfect” market, you might be waiting forever. The right time to buy or refinance comes down to your personal goals, finances, and lifestyle. Rates may come down a little, but prices and competition could go up.

If you're unsure what the numbers look like in your situation, let’s run them together — so you can make the right move with confidence.