Is the Difference Between a 6% and 5.99% Mortgage Rate Really Worth Waiting For?

One of the biggest topics in today’s housing market is mortgage rates.Many buyers hesitate every time rates move and say, “I’ll buy once rates fall into the mid-5% range.”But does waiting for that number actually make a meaningful difference?

The Real Difference Between 6% and 5.99%

According to the National Association of Realtors (NAR), if the 30-year fixed mortgage rate drops to 6%, nearly 550,000 additional households could re-enter the housing market.

That means 5.99% is a psychological trigger point — a number that could unleash a large wave of waiting buyers.

But when you look at the math, the difference is surprisingly small.

For example:On a $400,000 loan, the monthly payment difference between roughly 6.2% and 5.99% is about $50 per month — roughly the cost of one or two takeout meals.

However, once rates dip and large numbers of buyers rush back in, the situation changes quickly:

• Competition increases

• Homes sell faster

• Prices often rise

In that case, price increases can outweigh the benefit of the lower rate.

Why Acting Now Can Be the Smarter Move

Mortgage rates are currently hovering around 6.2%, already down from the 7% range earlier this year.Many buyers see this as a window of opportunity and are stepping back into the market.

NAR Deputy Chief Economist Jessica Lautz recently noted that with rates averaging in the low-6% range over the past several weeks, buyers are seeing more options and confidence in purchasing is gradually improving.

Meanwhile, Matt Vernon from Bank of America emphasizes that instead of waiting for a “perfect” rate, buyers should focus on whether:

• The home fits their needs

• The payment fits their budget

• The timing fits their life

Bottom Line: Action Often Beats Waiting

Many buyers are hoping for rates to drop into the high-5% range.But by the time that happens, competition and home prices may be significantly higher, creating even more pressure.

If you find a home today that you can comfortably afford, moving forward now may be the wiser decision — especially while inventory is higher and negotiation power still exists.

 Is the Difference Between a 6% and 5.99% Mortgage Rate Really Worth Waiting For?

One of the biggest topics in today’s housing market is mortgage rates.Many buyers hesitate every time rates move and say, “I’ll buy once rates fall into the mid-5% range.”But does waiting for that number actually make a meaningful difference?