Is Waiting for Rates to Drop Really Worth It? Let’s Break Down the Numbers

Every week, I talk to buyers who tell me they’re “waiting for rates to come down” before they jump into the market. And listen—I get it. A lower interest rate sounds like it should make a massive difference in affordability.

But here’s the surprising truth:
A small dip in mortgage rates may not save you nearly as much as you think.

Would You Let $80 Stand Between You and Homeownership?

If rates drop from today’s levels to 5.99%, the average buyer saves about $80 per month. Yep… $80.

That number may wiggle a bit depending on your exact price point, your lender, and your loan terms—but the takeaway is the same:

Waiting for rates to drop a little bit more is not the game-changing savings most people imagine.

In fact, rates have already come down enough to save buyers almost $400 per month compared to early spring. Those buyers who stepped in—even when it felt uncomfortable—are already benefiting.

Now here’s the kicker:

When Rates Drop Below 6%, the Market Will Shift Fast

The moment rates hit 5-anything, buyer psychology changes.

• People who have been “waiting for rates to drop” will jump off the sidelines.
• Buyers who were recently approved will have renewed buying power.
• Competition increases.
• Multiple offers return.
• Prices rise.

Meaning that little $80 per month savings could get completely wiped out by higher purchase prices.

Let’s Look at Long Island Numbers

Median sales prices today:

• Nassau County: $830,000
• Suffolk County: $695,000

Now let’s talk about how this really affects you.

If prices rise as a result of:

• a dip below 6%,
• more approved buyers entering the market,
• and the natural seasonality of January–May (our strongest home-buying window),

…then waiting could cost you more than any small interest-rate savings could ever give you.

The Impact of Just $10,000–$20,000 in Price Appreciation

Let’s say you buy at 80% LTV (20% down). Here’s how much your principal and interest payment alone increases if you wait and the price goes up:

If the price increases by $10,000

• Loan amount rises by: $8,000
• Monthly payment increase (based on current rates): ≈ $50–$60 per month

If the price increases by $20,000

• Loan amount rises by: $16,000
• Monthly payment increase: ≈ $100–$120 per month

So think about it this way:  You’re waiting to save $80 per month on rate. . . but the rise in prices during that wait could cost you $100+ per month.

That’s not even factoring in:

• higher competition
• bidding wars
• waived contingencies
• fewer options
• faster-moving inventory when buyers rush back

In other words…

Waiting May Cost You More Than Jumping In

If you buy now:

• You lock in today’s prices.
• You avoid the buyer surge.
• You keep control instead of competing in feeding-frenzy conditions.

Your Move Determines Your Outcome

Planning to buy in 2025?
You don’t need to time the market perfectly—nobody can.

You just need to understand the math.

And right now, the math shows that waiting for a tiny dip in rates may cost you thousands upfront and hundreds per month as prices rise.

If you want to talk through your specific numbers, run scenarios, or understand your true monthly payment options, I’m here and happy to help.