When it comes to buying a home, many potential homebuyers find themselves asking whether now is the right time to buy or if they should wait for mortgage rates to drop. With shifting interest rates, tight housing inventory, and a fluctuating market, it’s not always easy to know what the best move is.

While there’s no universal answer that fits everyone’s situation, the decision depends largely on your financial readiness and long-term goals. This article breaks down the current housing market conditions, including mortgage rates, home prices, inventory levels, and competition among buyers, to help you determine whether it’s better to buy now or wait.

Current Mortgage Rate Landscape

As of May 2025, the average 30-year fixed mortgage rate is at 6.76%, with a 15-year fixed rate at 5.89%. These rates have been relatively stable in recent weeks after experiencing significant fluctuations in 2024. Experts predict that mortgage rates will gradually decrease over the rest of 2025, with Fannie Mae forecasting an average rate of around 6.3% by year-end. While this is expected to be a slight dip, it’s important to remember that these forecasts are subject to change due to various economic factors, such as inflation, Federal Reserve policies, and global developments.

Waiting for rates to fall significantly may not necessarily lead to substantial savings and could result in missed opportunities. While the rates may decrease slowly, it’s crucial to evaluate your personal financial situation and make decisions accordingly.

Key Market Factors to Consider

When deciding whether to buy now or wait, it’s essential to look beyond mortgage rates and evaluate other market conditions. Here’s a snapshot of the Grand Rapids housing market as of April 2025:

• Home Prices: Home values are seeing a steady increase, with the median home price in Grand Rapids sitting at approximately $310,440, which represents a 3.4% rise from the previous year.
• Inventory: While inventory has increased slightly, with 979 homes listed for sale in April, the market is still relatively tight. Demand continues to outpace supply, keeping prices high.
• Buyer Competition: Competition is still fierce, with 52.5% of homes selling above asking price in April. However, the average days on market have increased slightly to 21, suggesting that the market is cooling a little.

Risks of Waiting

Many homebuyers think they can wait for mortgage rates to drop or home prices to fall, but it’s difficult to time the market perfectly. While rates may drop slightly, home prices could continue to rise, especially in regions like Grand Rapids where demand is still strong.

If you choose to wait, you may end up paying more for the home itself due to rising prices, and you could lose out on negotiating power if demand increases further. Additionally, you risk missing out on a home that fits your needs right now. For many buyers, the cost of waiting can be significant, especially if your desired home is in high demand.

Why Buying Now Could Be a Smart Move

If your financial situation is stable, buying a home now may be a wise decision. Here’s why:

1. Home Prices Could Keep Rising
   In areas like West Michigan, home prices are steadily climbing. By purchasing now, you lock in a price that could become more favorable in the future as home values continue to appreciate through 2025.
2. You Can Refinance Later
   It’s essential to remember that you’re not stuck with your mortgage rate forever. If rates drop in the future, you can refinance to take advantage of a lower rate without needing to compete with other buyers in a hot market.
3. More Negotiating Power
   In today’s market, where homes are staying on the market a little longer, you might find sellers more willing to negotiate. Whether it’s on price, repairs, or closing costs, this flexibility can give you more room to secure a good deal.

Is Waiting for Lower Rates Worth It?

The key question for many homebuyers is whether it’s worth waiting for mortgage rates to drop. While it’s tempting to wait for a better rate, several factors come into play. The truth is, you may end up paying more for the house itself as prices continue to rise. Additionally, increased competition once rates drop could lead to bidding wars, diminishing your ability to negotiate effectively.

For many buyers, waiting for the perfect timing could result in missing out on a great opportunity in the current market.

The Bottom Line: It’s About Your Financial Readiness

Ultimately, the right time to buy a home depends on your personal circumstances, not just market conditions. Trying to time the market can often lead to stress and indecision. It’s more important to evaluate whether buying aligns with your financial situation, lifestyle, and long-term goals.

Here are a few key questions to ask yourself before making a decision:

• Do I have a steady income that will support a mortgage?
• Is my credit score in good shape to secure favorable loan terms?
• Do I have enough saved for a down payment and closing costs?

Beyond finances, think about your lifestyle. Are you relocating for work? Expanding your family? These factors are just as important as the market conditions when deciding to buy.

Conclusion

Choosing whether to buy a home now or wait is a personal decision that depends on your financial stability and future goals. While waiting for rates to drop might seem appealing, it’s crucial to weigh the potential risks of rising home prices and increased competition. If your financial situation allows and buying aligns with your current needs, waiting for a better rate might not be worth the cost in the long run.