Thinking About Making A Move? Why Planning Matters More Than Perfectly Timing Mortgage Rates

If making a move is on your radar in the next year, you may be wondering the same thing as many other buyers:

Should I wait for mortgage rates to come down?

It’s an understandable question. Mortgage rates directly impact your monthly payment and purchasing power. But trying to perfectly time the market can leave buyers sitting on the sidelines waiting for a number that may or may not arrive.

Instead, there’s a better approach: plan for a range of rates so you’re prepared to act when the right home comes along.

Mortgage Rates Change—Your Plan Can Account for It

A recent analysis shared by the National Association of REALTORS® looked at historical mortgage rate fluctuations and offered a simple guideline buyers can use when planning ahead.

If you're considering buying:

• Within 12 months: Plan for rates to potentially fluctuate by about 1 percentage point.

• Within 6 months: Build in approximately 0.75 percentage points of flexibility.

• Within 3 months: Plan for approximately 0.50 percentage points.

These aren't predictions about where mortgage rates are headed. Instead, they're a helpful way to think about your budget based on how much rates have historically moved over different periods of time.

Focus on What You Can Control

Rather than asking, “What will mortgage rates be six months from now?” consider asking:

“What would my budget look like at a few different rates?”

Running the numbers at different interest rates can help you determine a comfortable monthly payment and understand how your purchasing power could change.

More importantly, it gives you a plan.

If rates improve, great, you may find yourself with additional purchasing power or a lower monthly payment.

If rates increase, you've already accounted for that possibility and can adjust accordingly.

Either way, you're making decisions based on your finances and goals rather than trying to predict the market.

A Changing Market Can Create Opportunities

It's also important to look beyond the mortgage rate itself.

Real estate markets are constantly responding to changes in inventory, buyer demand, home prices, and interest rates. When one part of the market shifts, opportunities can emerge elsewhere.

For example, a market with fewer competing buyers may give you more time to make a decision, greater negotiating power, or opportunities that weren't available when competition was at its peak.

That's why the "right time" to buy isn't determined by one number.

It's about finding the right home, at the right price, with a monthly payment that comfortably works for you.

Start Planning Before You're Ready to Buy

You don't need to be actively touring homes to start preparing for a future purchase.

In fact, starting the conversation six to twelve months before you hope to move can give you valuable time to understand your financing options, establish a comfortable price range, learn what's happening in the neighborhoods you're considering, and adjust your plan as the market changes.

Then, when the right opportunity comes along, you're not starting from scratch.

You're ready.

Thinking About Buying in the Next Year?

Whether you're a few months away or simply starting to think about your next move, you don't have to perfectly predict mortgage rates to make a smart real estate decision.

You just need a plan that gives you flexibility.

At Wilson Group, we help our clients look at the full picture, from their timeline and budget to current market conditions and available opportunities, so they can make informed decisions with confidence.

If buying a home is somewhere on your horizon, reach out to our team. We'd be happy to start the conversation and help you build a plan for what's next.

Source: National Association of REALTORS®, “Rate Hike Shock? Here’s How Buyers Can Budget for It.”