Why Waiting for 3% Mortgage Rates Could Cost You

Let’s talk about something we are  hearing a lot right now: buyers pressing pause, holding out hope that mortgage rates will somehow return to the “good old days” of 3%. We get it—it felt like magic. But those ultra-low rates weren’t built to last. They were a temporary response to a very specific moment in time. And as the market finds its footing again, it’s time for a bit of a reality check.

Back in 2020 and 2021, 3% rates were a game-changer. They gave buyers more purchasing power and made monthly payments feel a whole lot lighter. But those rates came from emergency economic measures during the height of a global pandemic. Today’s world—and economy—is a different one entirely.

Now, we’re seeing rates in the high 6% to low 7% range. And while there’s talk of a slight dip later this year, most experts agree: we are not going back to 3%.

In fact, many forecasts expect rates to level out in the mid-6% range—something Zillow’s Senior Economist Kara Ng echoed when she said, “While Zillow expects mortgage rates to end the year near mid-6%, barring any unforeseen shocks, that path might be bumpy.”

What Buyers Should Really Focus On

Here’s the bigger picture: if you're sitting on the sidelines waiting for 3% to return, you could be missing out on solid opportunities in the meantime. Instead of waiting for the perfect rate, focus on what you can control—like your budget, your credit score, and working with a savvy local agent and lender who can help you get creative with financing and strategy.

We’re seeing more inventory now than we have in years. That means less competition, more options, and—yes—more room to negotiate. If rates do dip later this year, guess what’s going to happen? Everyone who’s been waiting will jump back in, and competition will heat right back up.

As Realtor.com put it:
“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.”

The Take Away

Those 3% mortgage rates? They were a moment in history—not the standard we should expect moving forward. Now’s the time to shift your perspective and prepare wisely for what’s ahead.

If you're feeling unsure about where to start, that’s exactly where we come in. We’ve helped countless buyers navigate shifting markets, and we know how to build a smart game plan that fits your goals—not just the headlines. Let’s talk about what’s possible now, so you don’t miss out on the opportunities already here.

Warmly,

Lauren, Tina and Gigi | Lauren Zurilla & Associates

Adapted from Keeping Current Matters