Mortgage Rates Aren’t Dropping to 3%—But That’s Not Bad News

Still Waiting on 3% Mortgage Rates? Here’s Why It’s Time To Rethink That

If you’ve been holding off on buying a home, hoping mortgage rates will dip back to the historic lows of a few years ago—you’re not alone. A lot of buyers are pressing pause, waiting for the return of 3%.

But here’s the truth: those rates weren’t built to last.

The ultra-low rates we saw in 2020 and 2021 were an emergency response to an unprecedented moment—the height of a global pandemic. And while they gave buyers a major boost back then, they were never going to be permanent.

Today’s market is different. The economy is more stable, inflation is being closely watched, and mortgage rates have adjusted to reflect that reality. Now, they’re hovering in the high 6% to low 7% range.

What Experts Are Saying About Where Rates Are Headed

While projections vary slightly, most industry forecasters agree on one thing: mortgage rates are not heading back to 3%. Instead, we’re likely to see them settle somewhere in the mid-6% range over the next few months.

Kara Ng, Senior Economist at Zillow, puts it this way:

“While Zillow expects mortgage rates to end the year near mid-6%, barring any unforeseen shocks, that path might be bumpy.”

Translation? Small shifts are possible—but another major drop is unlikely.

What That Means for You as a Buyer

Waiting for a rate that might never come could cost you more in the long run.

Here’s what you can do instead:

• Focus on what you can control: your budget, your credit score, and building a plan with the right professionals.

• Work with a local agent and a trusted lender: they’ll help you explore creative options, financing programs, and negotiation strategies that fit your goals.

• Act before competition ramps up: if rates dip slightly later this year (as many experts predict), more buyers will jump back in—creating more demand and more pressure.

Realtor.com explains it well:

“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.”

Bottom Line

Those 3% rates are part of history—not the forecast. It’s time to adjust expectations and look at the real opportunities in today’s market.

If you’re ready to stop waiting and start planning, let’s talk. I’ll walk you through what’s happening locally, what your real options are, and how we can build a smart strategy for today—not yesterday.

And for more buyer tools, tips, and free resources, visit buywithamber.pillarrealestate.com.