Why Waiting for 5.99% Might Cost You More Than You Think

Why Waiting for 5.99% Might Cost You More Than You Think

Mortgage rates have been the monster under the bed for a while. Every time they tick up, people flinch and say, “Maybe I’ll wait.”

But here’s the twist — waiting for that perfect 5-point-something rate could end up haunting your wallet later.

The Magic Number

According to the National Association of Realtors (NAR):

“. . . a 30-year fixed rate mortgage of 6% would make the median-priced home affordable for about 5.5 million more households—including 1.6 million renters. If rates were to hit that magic number, it’s likely that about 10%—or 550,000—of those additional households would buy a home over the next 12 or 18 months.”

That “magic number” — 6% — is what so many buyers are waiting for.

And as expert forecasts suggest, we may see that happen in 2026. But here’s the catch: once that shift happens, it’s going to wake the market back up.

When rates drop into that psychological sweet spot, more buyers will jump in — and that surge in demand will drive home prices higher.

The Math Behind the Hype

Let’s put some numbers to it.

On a $400,000 mortgage, the difference between today’s rate (around 6.2%) and that coveted 5.99% is roughly $50 a month.

That’s less than a couple of coffee runs or a few takeout orders each month.

But if home prices rise when more buyers rush in, you could easily lose that savings — and then some.

So, while it’s tempting to wait for that lower rate, the math shows it might not actually help you as much as you think.

Right now, you’ve got the advantage of:
✅ More homes to choose from
✅ Better negotiating power
✅ Less competition from other buyers

Once rates dip below 6%, those benefits start disappearing fast.

Why Acting Now Makes Sense

Jessica Lautz, Deputy Chief Economist and VP of Research at NAR, explains:

“Over the last 5 weeks, mortgage rates have averaged 6.31%. This has provided savvy buyers a sweet spot to reexamine the home search process with more inventory, widening their choices.”

And Matt Vernon, Head of Retail Lending at Bank of America, adds:

“Rather than waiting it out for a rate that they like better, hopeful homebuyers should assess their personal financial situation—if the house is right for them, and the upfront and monthly payments are affordable, it could be the right chance to make a move.”

In other words — don’t wait for “perfect.” Because when everyone else thinks it’s the perfect time to buy, you’ll be competing with all of them.

Bottom Line

If moving at today’s rate still feels scary, remember: waiting doesn’t always pay off.

Once rates dip below 6%, demand (and prices) will climb again.

So instead of chasing the “magic number,” focus on what you can control — your budget, your goals, and your timing.

Because if you’re ready, this might just be your moment to make a move before the market wakes up again.