Are Today’s Mortgage Rates Good or Should You Hold Out for Better?

Core Insights - Current mortgage rates are not at the ultra-low levels seen during the COVID-19 pandemic, but there may be an optimal time for better rates in the near future [2] - The Federal Reserve's monetary policy is a significant factor influencing mortgage rates, with expectations of rate reductions throughout 2026 [3] - Current mortgage rates are slightly lower than a year ago, and they are expected to hover around the mid-sixes through 2026 [4] Group 1: Federal Reserve Influence - The Federal Reserve's easing monetary policy is expected to lead to lower mortgage rates in the near future, with a positive correlation between Fed actions and mortgage rate changes [3] - Market consensus indicates that the Fed will lower rates throughout 2026, impacting mortgage rates positively [3] Group 2: Current Market Conditions - Current mortgage rates are slightly lower than they were a year ago, with forecasts suggesting they will remain around mid-sixes through 2026 [4] - The extremely low sub-3% pandemic rates are no longer available, and potential buyers are encouraged to act if they find a suitable home [5] Group 3: Buyer Strategies - Buyers are advised to "buy the house and rent the mortgage," as rates may drop unexpectedly, allowing for refinancing opportunities in the future [5]