10/14/2026
Should You Wait for a Lower Interest Rate Before Buying?
Many buyers focus only on the interest rate—but forget to compare the total monthly payment.
Here is a real example:
Buying now:
Purchase price: $1,660,000
Down payment: $960,000
Loan amount: $700,000
Interest rate: 7.125%
Mortgage payment: $4,716.03
Property tax: $1,729.00
Total: $6,445.03 per month
Waiting until the rate drops to 5.999%:
If increased demand pushes the same home’s price to $1,900,000 (6 months ago, this property value was over $2,000,000 in 95132):
Loan amount: $940,000
Mortgage payment: $5,635.17
Property tax: $1,979.16
Total: $7,614.33 per month
Even with a conservative future price of $1,800,000, the estimated total would be $6,911 per month—about $466 more each month than buying now.
***A lower interest rate does not always mean a lower payment. When rates fall, buyer competition and home prices may rise. You may also need a larger loan and pay higher property taxes.
**The better strategy may be to secure the right home at a good price now, then refinance later if rates decrease and refinancing makes financial sense.
***You may be able to refinance the rate—but you cannot go back and purchase the home at today’s price.
Contact me (408-393-2068) if you would like help comparing your numbers before deciding to buy or wait.
Figures are estimates for illustration only. Future rates, property values, and refinancing eligibility are not guaranteed. Payments shown do not include insurance, HOA dues, or other applicable expenses.
