Are Today’s Mortgage Rates Good or Should You Hold Out for Better?
Written by
Rebekah Evans
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Amen Oyiboke
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Checking today’s mortgage rates might leave you feeling stuck in limbo: Are these the best rates you can get, or should you wait for something better? During the COVID-19 pandemic in 2020, many Americans jumped at the chance to buy property thanks to ultra-low mortgage rates.
Now, at the end of 2025 and beginning of 2026, rates are not exactly at that same level — though there could potentially be an optimal time right around the corner when the right percentage locks into place. How will you know? Here are a few tips on deciding if today’s mortgage rate is best for you.
Watch the Fed
One of the biggest factors influencing mortgage rates is Federal Reserve monetary policy, according to Robert R. Johnson, a professor of finance at Creighton University. “Easing monetary policy bodes well for lower mortgage rates in the near future. The CME Group compiles the view on interest rates via its Fed Watch Tool based upon Fed Funds futures contract prices.”
“The consensus of market participants is that the Fed will lower rates throughout 2026. While mortgage rates don’t move in lockstep with the Fed’s actions, there is a positive correlation between Federal Reserve monetary policy and changes in mortgage rates,” said Johnson. “Potential borrowers expecting pandemic rates will be sorely disappointed and would benefit from taking a longer-term view of mortgage rates.”
Let Go of Past Rates
No one can say for certain what will happen with rates in the future, but current mortgage rates appear to be hovering slightly lower than they were a year ago, said Matthew Sanford, AVP of mortgage lending at Skyla Federal Credit Union. Based on the current economic climate and forecasted rate changes from the Federal Reserve, Sanford foresees that mortgage rates are likely to hover around mid-sixes through 2026.
“Those extremely low sub-3% pandemic rates are a thing of the past,” Sanford said. “When it comes to buying a home, if you found the right home that fits your budget, now is a great time to act, regardless of rates.”
Regardless of where the market is heading, Sanford noted that buyers should “buy the house and rent the mortgage.” Rates could drop unexpectedly, he said, and if that happens, homeowners would be well positioned to refinance to a lower rate while also seeing their home equity grow as values rise with increased demand.
Don’t Time the Market
“History tells us that attempting to ‘time the market’ is futile,” said Hector Amendola, president at Panorama Mortgage Group.
Amendola described that consumers have been conditioned to believe that lower interest rates make homes more affordable. “History shows us otherwise. When mortgage rates fall, sidelined buyers jump into the market.”
“As home sales increase and inventory becomes scarcer, prices rise, and average-income Americans are priced out of the market again,” said Amendola. “While lower rates make it possible for some people to afford a home, the unforeseen cost [adds] competition for homes with more buyers in the market.”
Amendola remarked that history repeatedly tells the story, and the key is getting educated about homebuying, including mortgage payments, insurance, and the costs of being a homeowner. “Once that’s done, it’s time to get into the market,” Amendola recommended.
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