Lately, a lot of would-be buyers are hitting the brakes, waiting for mortgage rates to dip back down to the historic lows of 3% we saw in 2020 and 2021. If you’re one of them, here’s the honest truth: those rates were a once-in-a-lifetime exception, not a long-term norm.
What happened with 3% Mortgage Rates?
During the height of the pandemic, the Federal Reserve slashed rates to stimulate the economy. The result? Ultra-low mortgage rates gave buyers more affordability and greater purchasing power.
But that was a response to a global crisis, not a sustainable baseline.
Now that the economy has largely recovered and inflation is still a concern, mortgage rates have climbed. As of now, we’re seeing rates hover in the high 6% to low 7% range, and while there may be slight movement downward later this year, most experts agree we are not returning to 3% anytime soon.
"While Zillow expects mortgage rates to end the year near mid-6%, barring any unforeseen shocks, that path might be bumpy."
— Kara Ng, Senior Economist at Zillow
What Should Today’s Buyers Do?
If you’re waiting for 3% rates to return, you might end up waiting longer than expected—and missing great opportunities in the meantime.
Instead of putting your goals on hold, here’s what you can do right now:
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Get clear on your budget
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Improve your credit
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Work with a knowledgeable real estate agent and a trusted lender
Together, we can explore down payment assistance programs, alternative financing options, and strategies to make your purchase affordable even with today’s rates.
And here’s something to think about: If rates do dip slightly later this year, more buyers will likely jump back into the market. That means more competition and potentially more bidding wars.
“Staying out of the market in hopes of a rate drop that never comes can lead to missed opportunities. Rising home prices, rent increases, and inflation might outpace any future savings on interest. And if rates do fall sharply again, buyers could face an entirely different challenge: surging competition.”
— Realtor.com
Bottom Line
The 3% mortgage rates of the past were a unique result of extraordinary circumstances, and they’re not coming back anytime soon.
Instead of waiting for a rate that may never return, focus on what you can control. Get ahead of the crowd, work with professionals who understand the market, and explore creative ways to make homeownership possible in today’s landscape.
At Better Broker Texas Realty, we’re here to guide you through every step with real talk, smart strategy, and a deep understanding of what works in this shifting market.
