Should You Wait for Lower Rates? Here’s Why It Might Not Pay Off

Real estate expert Barbara Corcoran recently shared her thoughts on what could happen if the Federal Reserve lowers interest rates, and her take is far from optimistic for those waiting to buy. While many homebuyers are anxiously watching for mortgage rates to drop, Corcoran warns that a rate cut may not deliver the savings people expect. In fact, it could trigger the opposite effect: skyrocketing home prices due to increased demand.

As she explained, if rates drop even a single percentage point, “everyone’s going to charge the market” and prices will likely surge, possibly by as much as 8-10%​.

This is because there’s a backlog of buyers who have been waiting for more favorable conditions, and a drop in rates could bring them out in force, leading to bidding wars and higher prices.

Why It Might Be Better to Buy Now

Many buyers might think it’s smarter to wait for lower rates, but Corcoran suggests that getting into the market now could actually give you a better chance of securing a home without the frenzy. If you buy today and rates drop later, you can always refinance to lower your mortgage payments. However, if you wait, you might end up competing with a flood of buyers, driving prices up even further and eroding any potential savings from lower rates.

This creates a dilemma for both buyers and sellers:

• Buyers might find themselves paying more for homes as demand increases, even if mortgage rates fall.

• Sellers, on the other hand, may sell at a higher price but then face inflated prices when trying to buy their next home.

How the CashBack & Keys Program Can Help Both Parties

Here’s where the CashBack & Keys Program comes in. As John Baptiste explains:

“The CashBack & Keys Program offers a rebate on closing costs, helping to offset the rising prices that buyers might face when rates drop. This can give buyers some breathing room when they’re making offers in a competitive market. Sellers, on the other hand, can benefit from this program by getting the most out of their current home sale, while also having a financial cushion to help them purchase their next home, even in a more expensive market.”

This approach benefits both sides of the transaction. Buyers can compete more effectively by reducing their closing costs, while sellers can make their next purchase with added financial flexibility.

If you’re considering entering the housing market, the CashBack & Keys Program could be the key to navigating these uncertain waters, giving you an edge no matter what happens with interest rates. Explore how it can work for you here.

Taking action now could help avoid the pitfalls of waiting for rates to drop and give you a chance to secure the home you want, without the frenzy of heightened competition.