Should I Wait to Buy a Home? The Ultimate 2025 Guide to Timing Costs

Should I wait to buy a home? It's the question I hear most from buyers in Grove City and across Pennsylvania. Four out of five home buyers are waiting for mortgage rates to fall before they make a home purchase this year, according to recent housing market data.

I get it. Nobody wants to lock into a 6.8% mortgage when they remember the days of 3% interest rates. It feels like you're getting a raw deal, especially when every financial guru on social media is telling you to "wait it out" for better loan terms.

But here's the uncomfortable truth I've learned after working as a real estate agent in Grove City for years: waiting for the "perfect" mortgage rates could cost you significantly more than just buying a house now with today's housing market conditions.

I ran the numbers on what waiting actually costs, and the results might surprise you. In many cases, buyers who wait for interest rates to drop by even a full percentage point could end up paying $30,000 to $50,000 more for the exact same home purchase.

Let me show you the math that most home buyers aren't doing, and why the strategy of waiting might be costing you more than you think in today's housing market.

Should I Wait to Buy a Home? Here's What the Data Says

The real estate market rewards action, not perfection. As one of the top Grove City real estate agents, I've watched too many qualified buyers get priced out while waiting for perfect conditions that may never come.

Scenario: $300,000 Home Purchase in Grove City

Option 1: Buy a House Today

• Purchase price: $300,000

• Mortgage rates: 6.8% (current average)

• Down payment: $60,000 (20%)

• Monthly mortgage payment: $1,968

• Property taxes: $250/month (Grove City average)

• Total monthly payment: $2,218

Option 2: Wait 12 Months for Rates to Drop

• Purchase price: $306,000 (2% home price with conservative appreciation)

• Mortgage rates: 6.3% (optimistic forecast)

• Down payment: $61,200 (20%)

• Monthly mortgage payment: $1,903

• Property taxes: $255/month

• Total monthly payment: $2,158

You save $60 per month by waiting. But you paid $6,000 more for the house and $1,200 more for your down payment.

The Real Cost of Waiting: It would take you approximately 10 years, or 120 months, to break even on the higher purchase price.

And that's assuming house prices only go up 2%. According to recent housing market data from Bankrate.com, home prices increased 3.4 percent in March 2025. If that pace continues in the local market, you're looking at even higher costs for waiting.

What Real Estate Market Experts Say About Mortgage Rates

Fannie Mae economists predict mortgage rates will move even lower within the next quarter and ultimately close the year at approximately 6.3 percent. The Mortgage Bankers Association forecasts rates will gradually slide from 6.8% to 6.4% through 2026.

Notice what's missing from these forecasts? Nobody is predicting that mortgage rates will return to 4% or 5% anytime soon. The Federal Reserve has made it clear that mortgage rates will remain elevated for the foreseeable future.

Greg McBride, chief financial analyst for Bankrate, put it bluntly: "The average 30-year fixed mortgage rate will spend most of the year in the 6s, with a short-lived spike above 7 percent, but never getting below 6 percent".

If you're waiting for rates to drop significantly, you might be waiting for years. And every month you wait, home prices continue to climb in the real estate market.

The Grove City Real Estate Market Reality Check

As a realtor in Grove City who tracks the local market daily, I'm seeing this play out in real time with my clients. Home prices across Pennsylvania continue to rise, even with higher mortgage rates. According to the Federal Housing Finance Agency's latest data, all 50 states experienced positive house price appreciation, ranging from 1.0% to 8.4% in the first quarter of 2025.

In the Grove City housing market, I'm seeing qualified home buyers lose out on properties because they're waiting for some mythical "better time" that may never come. Meanwhile, buyers who act now are getting into homes and starting to build equity immediately, regardless of whether the market favors buyers or sellers.

The lock-in effect is real, but it's not permanent. Freddie Mac researchers estimate the average interest rate lock-in effect for conventional mortgage borrowers was up to $47,800 in November 2024. As time passes and balances are paid down, more homes will hit the market, but that increased supply may not lead to a lower median home price if demand remains strong.

When Should I Wait vs. When Should I Buy Now?

You Should Wait If:

• Your monthly income is unstable, or you're expecting a job change

• You don't have money for closing costs and a solid emergency fund beyond your down payment

• Your minimum credit score needs improvement (aim for 620+ for conventional loans)

• You're planning to move within 3-5 years

• You haven't been pre-approved by mortgage lenders and don't know your real home buying budget

You Should Buy a House Now If:

• You're in a solid financial position with stable monthly income

• You have your down payment saved, plus closing costs

• Your median credit score qualifies you for good loan terms

• You plan to stay put for several years

• You're currently paying rent that could go toward monthly mortgage payments instead

Remember, private mortgage insurance (PMI) isn't the end of the world if you can't put 20% down. Many down payment assistance programs are available for qualified buyers in Pennsylvania.

The Hidden Costs of Waiting to Buy a Home

Beyond home price appreciation, there are other costs most home buyers don't factor into their decision of whether to buy a house now or wait:

Rent Increases: If you're renting while waiting for rates to drop, your rent isn't staying flat. Many Pennsylvania renters are seeing annual increases of 3-5%, adding hundreds to their monthly housing costs while they wait for the "perfect" time.

Opportunity Cost: Every month you pay rent instead of building equity through a home purchase is money you'll never get back. On a $300,000 home, you're building roughly $400-500 in equity each month from day one.

Tax Benefits: Homebuyers get property tax deductions that renters don't. For many buyers, the mortgage interest deduction alone saves them thousands of dollars annually.

Down Payment Assistance Programs: Many state and local programs currently exist that may not be available later. Waiting could mean missing out on these payment assistance programs.

The Strategy That Actually Works in Today's Housing Market

Instead of waiting for mortgage rates to drop, here's what I recommend to home buyers who are ready:

Buy now, refinance later. If interest rates drop significantly (say, to 5.5% or lower), you can always refinance your mortgage payment. As Fannie Mae's chief economist noted, when rates move lower, "it could be low enough to generate some extra sales from any would-be buyers still waiting on the sidelines".

The difference is, you'll be refinancing a home you already own and are building equity in, rather than paying more for that same home purchase later.

Focus on what you can control. You can't control the Federal Reserve or when mortgage rates tend to drop, but you can control your down payment, credit score, and debt-to-income ratio. Work on improving these factors to get the best mortgage rates available today.

Consider rate buy-downs. Some sellers and builders are offering to pay points to reduce your interest rates. That 6.8% rate might decrease to 6.3% with seller concessions, allowing you to enjoy lower monthly mortgage payments without waiting.

Shop mortgage lenders. Different lenders offer different loan terms. Working with multiple mortgage lenders can help you find the best rates tailored to your specific situation.

My Take as Your Local Grove City Real Estate Expert

After watching the Grove City real estate market for years, I've seen too many home buyers get priced out while waiting for perfect conditions. The families who bought in 2022 and 2023, even with higher mortgage interest rates, are now sitting on significant equity while their friends are still renting and hoping the market favors buyers.

The housing market data supports this nationally: The NAR forecasts that the median home price will increase by 2% in 2025, with many local markets experiencing even higher appreciation.

As one of the experienced Grove City real estate agents, I've learned that the real estate market rewards action, not perfection. If you're financially ready and find a home that fits your needs and home buying budget, the best time to buy a house is when you're prepared, not when mortgage rates hit some arbitrary number.

Should I Wait to Buy a Home? The Bottom Line

Yes, today's mortgage rates are higher than we'd all like. But house prices are also higher than they were last year, and they'll likely be higher next year too, regardless of whether we see a buyer's market emerge.

The question isn't whether mortgage rates will come down—it's whether you want to pay $300,000 for a house today or $320,000 for the same home purchase next year, even if you get slightly better interest rates.

I'd rather help you buy a $300,000 house at 6.8% than help you buy a $320,000 house at 6.3%. The math just works better for your monthly payment and long-term wealth building.

If you're tired of waiting and ready to run the numbers on your specific situation, let's talk. As a real estate agent in Grove City, I work with Pennsylvania homebuyers every week who are asking, "Should I wait to buy a home?" and I can help you figure out what makes sense for your budget and timeline.

Call or text me at (724)-992-4128, or reach out through my website. Because sometimes the best financial decision is making a smart move with the information you have right now in today's housing market.