Mortgage rates are definitely still grabbing attention—and it's easy to see why. When the latest jobs report turned out weaker than expected, the bond market responded quickly. Because of that, mortgage rates fell to their lowest level this year in early August, hitting 6.55%.

It might not seem like a huge change, but almost every buyer has been hoping for rates to go down. Even a small drop like this gives people hope that rates might actually start heading lower. So, what can we really expect moving forward?

The latest forecasts suggest that interest rates probably won’t drop significantly anytime soon. Most experts expect them to stay around the mid-to-low 6% range through 2026.

Basically, we don’t expect any major changes, but small shifts like the recent one are still possible.

Whenever there's new economic news, mortgage rates often shift in response. With a bunch of reports dropping this week, we'll get a clearer picture of the economy and inflation trends—and see how mortgage rates might move based on that.

What Rate Would Get Buyers Moving Again?

Most buyers are really focused on the 6% mark when it comes to interest rates. It’s not just a number they worry about — it actually makes a big difference. According to a recent report from the National Association of Realtors (NAR), if rates hit 6%, it could have some noticeable effects on the market.

• An additional 5.5 million households now have the ability to afford the median-priced home.

• About 550,000 people are expected to buy a home in the next 12 to 18 months.

There’s a ton of pent-up demand ready to go as soon as the market opens up. If you check out the graph above, Fannie Mae expects we’ll reach that point next year. So, it really makes you wonder—does it actually pay off to wait for rates to drop?

Here’s the thing: if you’re holding out for that 6% rate, keep in mind plenty of others are waiting for the same thing. When rates finally start to drop and more buyers flood the market at once, you might end up facing tougher competition, fewer homes to choose from, and higher prices. The National Association of Realtors puts it this way:

““Home buyers wishing for lower mortgage interest rates may eventually get their wish, but for now, they’ll have to decide whether it’s better to wait or jump into the market.”
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— NAR

Think about the special opportunity that’s available right now.

• With more homes on the market, you’ve got more options to choose from.

• Prices aren’t climbing as fast, so what you see is a bit more realistic.

• And since sellers are more flexible, there’s a good chance you can negotiate and land a better deal.

These opportunities won’t last if interest rates drop and demand picks up. That’s why NAR says:

““Buyers who are holding out for lower mortgage rates may be missing a key opening in the market.”
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— NAR

Bottom Line

Interest rates probably won’t reach 6% this year. But when they do, expect more buyers to come back into the market, which means more competition. If you want to avoid that pressure and have more room to negotiate, now is the best time to act — but that window might not stay open for long. It all comes down to how the economy moves from here.

Let’s chat about what’s going on in our local market and figure out if now is the right time for you to make a move before things get busier.