Buy Now vs Wait For Interest Rate Drop?

Should You Wait for Mortgage Rates to Drop? Here’s the Simple Truth for Ocean County Buyers

When mortgage rates are on the higher side, many buyers consider hitting the “pause” button and waiting for a better rate. It sounds reasonable—until you compare the cost of waiting with what’s happening to home prices in Ocean County. Let’s break it down in the simplest way possible.

Ocean County Home Prices Are Still Rising

Even in a cooling national market, Ocean County continues to appreciate steadily. Over the past year, local prices have risen roughly 3–5%, depending on the township.

That means a $530,000 home today may cost:

$545,000 next year at 3% growth, or
$556,000 next year at 5% growth

Waiting often means paying more for the same house—before you even talk about mortgage rates.

The “1% Rate Drop” Everyone Hopes For

Let’s imagine two scenarios:

Today’s mortgage rate: about 6.23%
A hopeful future rate: 5.23% (one full point lower)

On a typical Ocean County home with 20% down, that 1% lower rate would save a buyer about:

$269 per month
$3,230 per year

That’s real money, and it absolutely matters. But here’s the important part…

Home Appreciation Is Usually Bigger Than the Rate Savings

Using that same $530,000 Ocean County home:

A modest 3% appreciation = $15,900 in added value in one year
That’s almost five times more than the $3,230 saved from a 1% lower rate

In other words: If home prices rise even a little, the gain in home value is bigger than the savings from waiting for a lower rate.

You’d only need about 0.6% price growth in a year to break even with the cost of the higher interest rate. Ocean County has been far above that.

So What Does This Mean for Buyers?

The market rewards action, not waiting- If prices rise while you wait for a rate drop, the higher home price often outweighs the benefit of a slightly lower rate.

You can refinance later- If rates fall in the future, you can potentially lower your payment—without missing out on today’s home and today’s price.

Appreciation builds wealth immediately- Even at a conservative 3% growth, your home begins building equity faster than the “extra cost” created by a one-point higher rate.

A Simple Way to Think About It: If the home you want is available and affordable today, buying now usually puts you ahead—because appreciation starts working for you right away.

Mortgage rates fluctuate.
Home prices trend upward over the long term.
When the right house comes along, it often makes sense to secure it now and refinance later if the market improves.

A Coldwell Banker Riviera Realty Agent can guide you through today’s market, explain your financing options, and help you make the smartest move for your long-term goals.”