Forget About 3% Mortgage Rates—It’s Time to Move On
- grace264
- Jun 5
- 2 min read
One of the most common questions among homebuyers today is:“Will mortgage rates ever drop back to the 3% range?”
This question reveals that many people are still using the ultra-low interest rates of 2020–2021 as their benchmark when deciding whether it’s the right time to buy a home.
But the reality is quite different.
3% Rates Were a Historical Exception
During the height of the pandemic, the U.S. government and Federal Reserve rolled out unprecedented stimulus measures. One result was mortgage rates dipping to around 3%—a rare and temporary phenomenon.
Today, however, we’re in a completely different economic environment. The U.S. economy is showing steady growth, and both inflation and employment trends have shifted significantly. As a result, experts agree that a return to the 3% range is highly unlikely in the near or mid-term.
Kara Ng, Chief Economist at Zillow, predicts that—barring any major economic shocks—mortgage rates will likely stabilize around the mid-6% range by the end of this year.
Opportunities You May Miss While Waiting
Many potential buyers are choosing to “wait it out,” hoping for lower rates. But this strategy could backfire:
If rates drop, competition among buyers will spike again
Home prices and rents are already on the rise
Although more listings are hitting the market now, those opportunities may vanish quickly once buyer demand returns
According to Realtor.com, delaying a purchase in hopes of falling rates could mean facing higher prices, more bidding wars, and greater financial pressure down the road.
What You Need Now Is a Plan—Not More Waiting
This is not the time to avoid the market—it’s the time to enter it with a smart, realistic plan. Here’s what you can do:
Review your budget and assess your monthly payment comfort level
Work on improving your credit score
Explore mortgage options and down payment assistance programs
Connect with a trusted real estate agent and lender to develop a tailored strategy
Especially in the Chicago and Illinois areas, where home prices remain relatively stable compared to other major cities, smart and prepared buyers have a real advantage.
Bottom Line
The 3% mortgage era was a gift brought by extraordinary circumstances.
Now it’s time to move forward with a clear-eyed view of today’s market.
Today’s rates are still historically reasonable—and acting before the competition heats up again could be your smartest move.
If you’re thinking about buying a home, don’t wait for the perfect rate. Start building your plan.
In today’s market, successful buyers aren’t the ones who wait—they’re the ones who move early and wisely.
Let’s start planning together for your homeownership journey in Chicago or Illinois today.
📞 Hans Chul Han – Chicago BDB
📱 773-717-2227
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