Buying a house is a long-term commitment given the high transaction costs and related costs of moving and relocating. But a mortgage may be a short-term commitment as the average homeowner typically refinances their mortgage several times during a period of home ownership.
Mortgage rates have fallen over the early months of 2025, with the average 30-year fixed rate around 6.76%, providing homebuyers with some relief and potentially long-term savings in borrowing costs. Meanwhile, home prices haven’t budged much and remain elevated as a result of low supply and the fact that current homeowners may not be willing to put their homes on the market and risking obtaining a new loan at a much higher rate than their current one. Their current loans are just too good to give up.
Rather than waiting to try and time the market by seeking the lowest price or lowest mortgage rate, prospective homebuyers should consider their future home as a long-term purchase and buy a house that fits their needs, but more importantly, one that fits their budget. The strategy of “Date the Rate, Marry the House” is a strategy where the homebuyer buys a house suitable for their current situation rather than prioritizing the interest rate as the major factor influencing the purchase.