At the Jorgenson Group, one of the biggest questions we hear right now is: “Should I wait until rates drop into the 5s before I start house hunting?” And honestly, we get it. The idea of locking in a lower monthly payment sounds like music to anyone’s ears. But here’s the twist—when rates do eventually dip, you won’t be the only one rushing to buy. Picture the lines outside H-E-B on Thanksgiving week… that’s what the housing market could look like when buyers flood back in. (Source: Mortgage News Daily)
Right now, 30-year conventional mortgage rates are hovering around 6.22%, with FHA and VA loans averaging closer to 5.95%—not too shabby compared to where we’ve been. The real kicker? These current rates already bake in the expectation of more Fed cuts later this year. Translation: unless inflation and job reports start showing some ugly numbers, we may not see a huge plunge into the 5s overnight. Waiting could mean watching prices rise while you sit on the sidelines. (Source: Freddie Mac)
Here’s the thing: timing the market is a little like trying to time the traffic on I-35 through Austin. You think you’ve got it figured out, then bam—construction cones and brake lights for miles. The same goes for real estate. Last year, rates dropped after a Fed cut… only to jump a full percent higher within weeks after strong job and inflation reports hit. Buyers who “waited for the dip” ended up paying more. Don’t let that happen to you. (Source: Mortgage News Daily)
What does buying now mean for you? It means less competition, more room to negotiate, and potentially grabbing a home in a neighborhood you’ve been eyeing—whether it’s in Round Rock, Georgetown, or right in the heart of Austin. Sellers today are often more open to concessions, whether that’s covering some closing costs or helping with a rate buy-down. Try getting that once the market heats up with multiple offers rolling in.
And here’s a pro tip: remember, you marry the house and date the rate. You can always refinance if rates do drop significantly in the future. In the meantime, you’ll be living in a home you love instead of waiting in line with everyone else when demand goes through the roof. Plus, waiting until spring could mean stepping into a full-on bidding war season, and nobody likes elbowing their way through that.
At the end of the day, the “perfect time” to buy is when it makes sense for you. Our job at Jorgenson Group is to help you create a smart strategy in today’s market—whether that’s locking something in now or getting ready to move when conditions shift. Ready to talk about your real estate goals and make a plan before the crowd comes running? Give us a call at (512) 621-8178 or check us out at jorgensonrealestate.com. We’d love to help you get ahead of the game.
