The market isn’t waiting, and buyers have more leverage than they think.
Home prices are still moving, sellers are helping with costs, and waiting for the perfect rate may come with a bigger price than buyers realize.
“A mortgage isn’t just a rate. It can also be a tool for building equity and long term wealth.”
There may be an opportunity hiding behind today’s rate.
If you’ve been waiting for mortgage rates to drop before buying, you’re not alone. But focusing only on the interest rate could mean overlooking the advantages available in today’s market.
Home prices are continuing to rise, and many sellers are currently willing to help buyers with closing costs or temporary rate buydowns. That combination could make purchasing now more beneficial than waiting for a specific rate.
When you own a home, two things may begin working in your favor: the principal you pay down and any appreciation the property experiences. Waiting puts both opportunities on hold.
What could waiting one year cost?
Here is an illustrative comparison using a $440,000 home, 10% down and a 30 year fixed rate mortgage. The example assumes the home appreciates by 1.8% during the next 12 months.
| Illustrative comparison | Buy now at 6.625% | Wait one year for 5.5% |
|---|---|---|
| Estimated purchase price | $440,000 | $447,920 |
| Estimated monthly principal and interest | $2,536 | $2,289 |
| Principal paid during the first year | $4,322 | $0 |
| Potential appreciation captured | $7,920 | $0 |
| Potential wealth built during year one | $12,242 | $0 |
Swipe the table left or right to see the full comparison.
Waiting may produce a lower rate, but it could also mean paying a higher purchase price and missing a full year of principal reduction and potential appreciation.
of home sellers reportedly provided buyers with concessions in May 2026.
Sellers may be willing to help.
Seller concessions can potentially be used toward eligible closing costs or financing expenses, depending on the loan program.
On a $440,000 home, a negotiated 3% seller credit could provide as much as $13,200 toward eligible costs. One possible strategy is using seller funds for a 2-1 temporary rate buydown.
How a seller paid 2-1 buydown could work
A temporary buydown reduces the buyer’s principal and interest payment during the first two years. In this example, the seller provides the funds needed to create the temporary payment reduction.
| Temporary rate period | Estimated monthly P&I | Estimated monthly savings |
|---|---|---|
| Year 1 at 4.625% | $2,036 | $500 per month |
| Year 2 at 5.625% | $2,280 | $256 per month |
| Years 3 through 30 at 6.625% | $2,536 | Standard payment |
| Total estimated two year savings | $9,068 funded by the seller | |
Swipe the table left or right to see the full comparison.
The rate is temporary
A 2-1 buydown does not permanently change the mortgage’s note rate. The payment is temporarily reduced during the first two years and then returns to the full payment beginning in year three.
The savings are real
Although the rate reduction is temporary, the seller funded subsidy represents real savings on the buyer’s first two years of principal and interest payments.
Lower rates may bring more competition.
If mortgage rates fall significantly, more buyers may return to the market. That could increase competition, push prices higher and make sellers less willing to contribute toward buyers’ costs.
Right now, buyers may have something that is not always available in a more competitive market: negotiating leverage.
It’s about more than today’s rate.
The right decision depends on your budget, goals and long term plans. A personalized comparison can help you evaluate:
- Available loan programs
- Seller paid closing costs
- Temporary rate buydowns
- Down payment assistance
- Estimated monthly payments
- The potential cost of waiting
Let’s run your numbers, not just the market’s.
Every buyer’s situation is different. Let The DeAnn Ellis Team compare your estimated price range, down payment, monthly budget and available financing strategies.
We will help you understand the complete picture so you can make a confident decision based on your goals, not just today’s interest rate.
Mortgages Made Easy with The DeAnn Ellis Team
Illustrative assumptions: $440,000 purchase price, 10% down payment, 30 year fixed rate mortgage, 6.625% compared with 5.5% interest and 1.8% annual appreciation. Principal and interest only; property taxes, homeowners insurance and mortgage insurance are not included. Actual payments will be higher. Figures are estimates for educational purposes only and are not a quote or commitment to lend. Appreciation and seller concessions are not guaranteed. Refinancing requires qualification and may include closing costs. Temporary buydown eligibility and seller concession limits vary by loan program. Borrowers must qualify at the applicable qualifying rate. All loans are subject to credit, income, asset, property and underwriting approval. Interest rates and program availability are subject to change without notice. NFM, Inc. dba Element Home Loans, NMLS #2893. Equal Housing Lender.