If you've been considering buying a home but feel uncertain due to rising interest rates, you're not alone. Many buyers are wondering whether now is the right time to make a move or if they should wait for rates to drop. While higher interest rates can impact affordability, there are still compelling reasons to move forward with a home purchase.

Here’s what you need to know:

Freddie Mac, who began keeping data on mortgage interest rates in 1971, offers some of the most comprehensive historic mortgage rate data available. According to their records over the past 50+ years, the historical average for mortgage rates has been 8%; however there have been vast fluctuations from historic highs to historic lows in that timeframe. For example, mortgage rates reached a historic high of 18.63% in October 1981. On the other hand, the average mortgage rate hit a historic low of 2.65% in January 2021.

Today, in February of 2025 the average mortgage rate is right around 6.89%. While rates aren't as attractive as they once were, we haven't even hit the historic average interest rate.

While waiting for interest rates to decline might seem like a good strategy, there’s no guarantee they will. If rates drop significantly, competition could heat up again, driving home prices higher. Locking in a purchase now could mean securing a home at a more favorable price before demand picks up.

Many sellers are willing to negotiate concessions, such as covering closing costs or contributing toward a rate buy-down, to help buyers manage higher interest rates. If you purchase a home at today’s rates and rates decrease in the future, you can refinance to lower your monthly payment. Buying now allows you to start building equity rather than continuing to rent or waiting in an uncertain market.

Every buyer’s situation is different, and it’s important to have the right guidance. At Walston Group Real Estate, we’re here to help you navigate the market, explore financing options, and make informed decisions.