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What Mortgage Rate Are You Waiting For?

August 26, 2024 2 min read Brenda Bianchi

If you are waiting on the perfect mortgage rate before you move, you are in the same camp as a lot of would-be Tampa Bay buyers. After 43+ years through every rate environment, our team can tell you that “waiting for the right rate” is rarely the strategy that wins.

Where rates are now

Rates have come off their recent peaks but remain well above the 3% lows of 2020–2021. Most forecasts call for gradual normalization in the low-to-mid 6s through late 2026 as the Fed continues to manage inflation. Expect volatility week to week as economic data prints.

What to remember

  • Rates moved roughly a full point lower from their recent peak
  • Short-term blips do not change the longer-term trend
  • You can refinance later if rates drop materially — you cannot un-pay another year of rent

Know your number

Most buyers fixate on the rate when the question that actually matters is the monthly payment. Run real numbers: target home price, current rate, your down payment, taxes, insurance. If the all-in payment fits your budget, the rate is academic. If it does not fit, no rate will save you.

The trade-off of waiting

Wait 12 months for rates to drop 0.5%? You save roughly $100/month per $300k borrowed. In the same 12 months, Tampa Bay home prices typically rise 3–5%. On a $400k home, that is $12k–$20k more — far more than the rate savings.

The bottom line

Marry the home, date the rate. Buy when the home and the monthly payment fit your life. Refinance when rates make refinancing worth it. Our team is happy to walk through specific numbers for your situation in the Tampa Bay market.

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