A lot of homeowners are sitting on the fence right now. They want to sell. But they keep telling themselves the same thing.
“I’ll wait until mortgage rates drop back to 3 percent.”
I understand the thinking. A few years ago, rates were at historic lows. Everyone got spoiled. Now they are sitting well above that, and it feels like things should go back to normal.
But normal changed. The 3 percent mortgage was not normal. It was a once in a generation event.
Will Mortgage Rates Go Back to 3 Percent?
Most economists do not think so. The forces that pushed rates that low were unusual. A global pandemic. A federal reserve buying mortgage backed securities by the billions. Emergency policy.
That is gone.
Rates may come down some. A half point here, a quarter point there. But waiting for 3 percent again is like waiting for gas to go back to $1.99. It could happen. It probably will not happen anytime soon.
Meanwhile, the clock is ticking on your house.
What Does Waiting Actually Cost You?
This is the part people do not calculate. Every month you wait, you pay.
Property taxes. Insurance. Utilities. Lawn care. Minor repairs that keep adding up. If the house is vacant, you are paying for a house you do not even live in.
Then there is the market itself. Higher rates mean fewer buyers. Fewer buyers mean longer days on market. Longer days on market means more carrying costs.
Some homeowners have been waiting two years now. That is 24 months of taxes, insurance, and upkeep. That money is gone. It is not coming back.
What Should You Do If You Need to Sell?
If you truly need to sell, the question is not whether rates will drop. The question is whether waiting costs you more than selling now.
Sometimes it does not. If your house is in great shape and you have time, a traditional listing might be fine. We have written about when a cash offer is not your best option, and that still holds.
But if your house needs work, or you need to move, or you are tired of paying for a property you are ready to leave, waiting does not help you.
You can sell your house as-is without fixing it up, without listing it, and without waiting for the perfect rate environment.
The Bottom Line
You cannot control mortgage rates. You can control what you do next.
If you are ready to talk about your house, reach out and tell me about it. I will give you a straight answer, no pressure, no sales pitch.
Questions Answered in This Article
Will mortgage rates go back down to 3 percent?
Probably not anytime soon. The 2 and 3 percent rates of 2020 and 2021 were historic lows tied to a specific moment. Most economists expect rates to settle somewhere in the 5 to 6 percent range, not back at 3.
Should I wait for rates to drop before I sell my house?
It depends on your situation. If you are waiting because you think 3 percent rates are coming back, you may be waiting a long time. Meanwhile you are paying taxes, insurance, maintenance, and utilities on a house you are trying to leave.
How do high mortgage rates affect sellers?
Higher rates mean fewer buyers can afford to buy. That means fewer showings, fewer offers, and longer days on market. Cash buyers are less affected because they do not use loans.