Is Now the Right Time to Buy?

Every day, potential borrowers call and ask the same question: “Is now the right time to buy based on rates?” The answer isn’t always what they expect—but it’s almost always the right one.

For nearly 50 years before 2008, mortgage rates stayed above 5.5%. That wasn’t a fluke; it was the norm. Rates only dipped below that mark during major economic crises that required substantial government intervention. In other words, waiting for rates to drop under 5.5% is essentially waiting for another crisis—and betting on government action to intervene.

Here’s the truth: if you can afford to buy now, you probably should. Real estate is less about timing the market and more about time in the market. Waiting on the sidelines only delays building equity and securing a property at today’s prices before demand rises and inventory tightens.

Let’s look back at September 2020. Nearly four out of ten people thought it was a ‘bad time to buy a home.’ Mortgage rates were just 2.9% back then. Fast forward to today, and home prices have surged by 47%. That’s a clear reminder that the ‘best time to buy a home’ is never right now—it’s always ‘five years ago.’

The key is to buy when you can afford it and when you’re emotionally ready. Waiting for perfection in rates or the ideal market conditions often just leads to missed opportunities and higher costs down the road.

It’s also important to understand that even if a crisis does occur and rates drop, home prices tend to soar. Why? Because suddenly, hundreds of thousands of borrowers who were previously priced out can now qualify. This surge in demand pushes prices up rapidly, erasing much of the benefit of a lower rate. So while rates may be lower, the cost of the home itself is often much higher. There’s no magic bullet when it comes to homeownership; it’s about seizing the opportunity when you can afford it—not waiting for the perfect storm of conditions that rarely, if ever, align.

One of the things I often see loan officers do themselves is fixate on rates. Every morning, they wake up, check the news, and look at the rates. And while it’s important to stay informed and advise clients on when it’s a good time to lock in, the bigger truth remains: now is almost always a good time to buy if you can afford it. Rates will always fluctuate, markets will always shift, but none of us has a crystal ball. What we do have is the historical perspective that proves waiting often costs more in the long run. Real estate builds wealth over time, not by timing the market perfectly.

Here’s a critical perspective: even if rates do dip in the future, it’s almost always tied to some form of economic downturn. Think about it—rates only dropped drastically during economic crises that prompted government intervention. But when rates drop, demand skyrockets. Buyers flood back into the market, and suddenly home prices shoot up. What you gain in a lower rate, you often lose in the purchase price.

When your clients ask if it’s the right time to buy, consider this response:

"For nearly 50 years before 2008, mortgage rates stayed above 5.5%, only dipping during major economic downturns. If you’re waiting for rates to drop under that, it likely means waiting for another crisis—and government intervention. The reality is, if you can afford to buy now, you probably should. Real estate is about time in the market, not timing the market. Back in 2020, almost 40% of people thought it was a bad time to buy when rates were 2.9%, and since then, prices are up 47%. The best time to buy was five years ago. The second best time is right now."

Your clients are looking for guidance, not just numbers. By showing them the broader perspective and the cost of waiting, you help them make smarter decisions—not just for now, but for years to come. The market waits for no one, but those who understand its cycles are always a step ahead.