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April 18, 2025

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April 18, 2025

Rates Are in the 6s Again. Should You Wait or Buy?

Market Update

Coming Soon

Mortgage rates dipped back below 7% this week, landing at 6.87%. That’s just 0.25% above the lowest point seen all year. And let’s be honest, hearing “6s” just sounds a lot better than “7s.”

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But here’s the thing: not much has actually changed in the economy. What has changed is the fear factor. With headlines about recessions, job loss, and housing crashes, it’s easy to feel overwhelmed. And when fear sets in, many buyers freeze.

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The “what ifs” start swirling:

What if I lose my job? What if inflation comes back? What if this isn’t the right time to buy?

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And suddenly, the mortgage payment feels like too much risk.

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But here’s the reality:

The U.S. is still short 3.8 million homes, according to Realtor.com’s 2025 Housing Supply Gap Report.

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In the West, it could take nearly 7 years to close that gap if builders stay consistent.

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That kind of shortage supports home values long term. A massive drop in rates would likely trigger a rush of pent-up demand and bring bidding wars back. A slow, steady decline is much healthier.

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💡 Translation: Home values are still rising, but at a manageable pace.

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And here’s where opportunity shows up. Buyers are negotiating major savings right now. Some contracts this week included over $12,000 in seller-paid closing costs, with one totaling nearly $30,000. When most buyers are sitting on the sidelines, the smart ones are making moves.

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Inventory is also climbing in many markets:

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San Jose: +67.9%

Las Vegas: +67.8%

Denver: +67.3%

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More options mean more room to negotiate. Sellers are motivated, and buyers who are ready can find stronger deals.

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Another important trend: New construction homes now make up nearly 15% of all sales, more than double the share in 2011. Builders know the biggest challenge for buyers is the monthly payment.

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Rather than dropping prices, they’re offering closing cost assistance and interest rate buydowns. It might not be a better overall value, but it feels better… lower monthly payments, brand-new homes, and faster move-ins.

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Even with smaller floorplans, higher HOA fees, and added construction costs (up by $11,000 per home due to upcoming tariffs), builders are still closing deals because they’re addressing what buyers care about most.

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If you’ve been waiting, now might be the time to act. Rates are improving, inventory is increasing, and sellers are more flexible.

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Talk to a mortgage professional, crunch the numbers, and see if this moment makes sense for you. Over time, real estate has proven to be one of the most consistent ways to build wealth.