Mortgage rates have been like that scary thing you can’t stop thinking about. Every time they go up a bit, folks hesitate and think, “Maybe I should wait.” But here’s the catch: holding out for that perfect 5-point-something rate might actually cost you more in the long run.

The Magic Number

The National Association of Realtors (NAR) says:

““. . . a 30-year fixed rate mortgage of 6% would make the median-priced home affordable for about 5.5 million more households—including 1.6 million renters. If rates were to hit that magic number, it’s likely that about 10%—or 550,000—of those additional households would buy a home over the next 12 or 18 months.”
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— National Association of Realtors (NAR)

When mortgage rates reach that ideal point—which experts predict is more likely in 2026—more buyers who are currently holding back will feel motivated to jump into the market. This shift in mindset will release the pent-up demand that’s been waiting on the sidelines, and as more people start buying, home prices are expected to go up.

A 5.99% rate might seem like a great deal, but if you're holding off just to hit that number, it might not save you as much as you expect. Let’s break down the numbers so you can see what it really means (check out the chart below):

If you have a $400,000 mortgage, the difference between today's rate of about 6.2% and 5.99% comes out to around $50 a month. That’s less than what many of us spend on weekly coffee trips or the occasional DoorDash order. Plus, as home prices rise with more buyers entering the market, those small savings could disappear pretty quickly.

If you’re holding out for 5.99%, keep in mind that the small rate difference might not be worth passing up the benefits available right now—like a larger selection of homes, stronger negotiating power with sellers, and less competition from other buyers.

The truth is, those advantages begin to fade as more buyers jump into the market – and a rate below 6% is exactly what they’re holding out for.

Why Acting Now Makes Sense

““Over the last 5 weeks, mortgage rates have averaged 6.31%. This has provided savvy buyers a sweet spot to reexamine the home search process with more inventory, widening their choices.”
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— Jessica Lautz, Deputy Chief Economist and VP of Research at NAR

““Rather than waiting it out for a rate that they like better, hopeful homebuyers should assess their personal financial situation—if the house is right for them, and the upfront and monthly payments are affordable, it could be the right chance to make a move.”
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— Matt Vernon, Head of Retail Lending at Bank of America

Bottom Line

If the current rates make you nervous, keep in mind that waiting might not work in your favor. When rates drop below 6%—which some experts expect to happen next year—you’ll likely see more buyers entering the market and prices going up again.

Don’t worry about today’s mortgage rates. If you’re prepared, now could be the perfect opportunity to make your move before the market heats up again.