Why Waiting for Interest Rates to Drop May Not Save You Money on your new Home Purchase

If you’ve been thinking about buying a home but feel hesitant because interest rates are higher than they were a couple of years ago, you’re not alone. Many Eastside buyers tell me, “I’ll wait until rates drop — I’ll save money that way.”

It sounds logical in theory.
In practice, especially in markets like Bellevue, Kirkland, Redmond, Woodinville, and Sammamish, waiting for lower rates often leads to higher costs, fewer choices, and more competition.

Here’s why delaying your home purchase for a better interest rate may actually cost you more.

1. When Rates Drop, Competition Surges — Fast

Every time rates dip even slightly, a massive group of sidelined buyers re-enters the market.
On the Eastside, where inventory is already limited, this creates immediate competition.

What happens next?

• Showings double

• Offer review dates return

• Bidding wars become the norm

• Prices get pushed up 3–10% or more

• Contingencies are waived just to stay competitive

You may save a little on your monthly payment… but could end up paying $50,000–$250,000 more for the house.

2. Rising Prices Can Erase Any “Rate Savings”

Let’s look at a realistic Eastside scenario:

Home price today: $1,200,000
Rate today: 7.0%

If rates drop to 6%, buyer demand spikes — and prices follow.
A 5–10% jump is extremely common once competition heats up.

At 10% appreciation:
New price = $1,320,000

Even with the lower rate, the higher purchase price can easily wipe out any savings you hoped to gain by waiting.

You can refinance your mortgage later.
You can’t go back in time to buy the home at last year’s price.

3. Sellers Wait Too — Which Shrinks Available Inventory

Buyers aren’t the only ones waiting for “the right rate.”
Sellers do it too.

This creates an unusual effect:

• Inventory tightens

• Fewer new listings hit the market

• Remaining listings attract more aggressive competition

Buying before the rate-driven buyer surge often gives you more options and more leverage.

4. Today’s Market Offers Something Rare: Negotiating Power

In the current higher-rate environment, Eastside sellers are more flexible than they’ve been in years. Buyers today often negotiate:

• Seller-paid closing costs

• 2-1 rate buydowns

• Price reductions

• Repair credits

• Inspection periods

• More favorable timelines

When rates fall and multiple offers return, that flexibility disappears overnight.

5. You Can Refinance the Rate — You Cannot Undo the Price

One of the smartest strategies in today’s market is simple:

Buy the home now. Refinance the rate later.

Historically, every elevated-rate cycle has been followed by refinance opportunities. Meanwhile, Eastside home values continue to rise long-term, meaning you’re building equity while others are still waiting for the “perfect” borrowing environment.

Delaying your purchase could cost you:

• Higher home prices

• Lost appreciation

• Reduced negotiating power

• More competitive conditions

• Less inventory

The math favors buying sooner, not later.

Bottom Line: Waiting Usually Costs More Than It Saves

The idea that lower interest rates automatically translate to better affordability simply doesn’t hold up in Eastside real estate.
Between rapid price appreciation, intense buyer demand, and limited inventory, lower rates often trigger higher overall costs.

If you’re considering a move in 2025–2026 — whether Bellevue, Kirkland, Redmond, Sammamish, Woodinville, or anywhere on the Eastside — it’s worth exploring your options now rather than waiting for the crowd.

Curious what buying now versus later looks like for your price point?
I’m happy to run a personalized “cost of waiting” scenario for you.

Just reach out — I’m here to help.