If you’ve been keeping an eye on mortgage rates, you know they’ve been on quite a ride over the past year. In 2024, 30-year fixed rates climbed as high as 7–8%, leaving many would-be buyers feeling priced out.
Now, in mid-2025, rates have cooled into the mid-6% range (with even some well-qualified buyers being offered rates as low at 5.9%). That’s better, but not exactly the bargain-basement levels of 2020 and 2021, when rates hovered around 2–3%.
With experts predicting rates could fall further by the end of the year, a lot of buyers are asking: “Should I wait for lower rates before I buy?”. Here’s the problem: waiting for that “perfect” rate could actually end up costing you more in South Jersey.
What Happens When Rates Drop?
When rates dip, more buyers jump back into the market. Demand surges—but the number of homes for sale doesn’t magically increase. In South Jersey, where inventory is already tight, this can set off bidding wars and push home prices higher.
So while your interest rate might be half a percent lower, the price of the home could be tens of thousands more. That higher price tag can easily wipe out the savings from the lower rate, leaving you with a higher monthly payment than if you’d bought today.
It’s like holding out on booking a flight, hoping a special vacation deal might pop up. But as more people start buying seats, the remaining tickets shoot up in price, and suddenly you’re paying more than if you’d just booked earlier.
Why Buying Now Could Be The Smarter Move
If you can afford to buy now, here’s why it might make more sense than waiting:
- Prices are likely to rise. When rates fall, competition heats up. Buying now locks in today’s price before demand spikes.
- You can always refinance later. If rates do drop significantly, you can refinance and lower your monthly payment. But you can’t rewind the clock on home prices.
- You start building equity immediately. The sooner you buy, the sooner you start putting your money toward your future instead of paying rent.
Know Your Buying Power Today
The smartest move isn’t waiting—it’s finding out what you can afford right now. We work closely with trusted local mortgage lenders who can run the numbers, explain your options, and help you take advantage of programs (like downpayment assistance) that make homeownership more affordable.
If you want to be put in touch with a mortgage expert, fill out the form below.
