Why Waiting for Lower Rates Might Cost You More

Waiting for lower mortgage rates might sound like the safer move.

But what if waiting potentially costs you negotiating power?

Here's something many buyers don't consider:

Nearly 45% of recent homebuyers received some kind of help from the seller, according to Redfin. That help may include closing costs, repairs, or money to help lower the mortgage payment for a period of time.

Higher mortgage rates aren't just putting pressure on buyers.

They're putting pressure on sellers, too.

Realtor.com reported that 20.8% of homes for sale had a price cut in September 2026, the highest September level since 2018.

The Price Isn't the Only Thing You Can Negotiate

Let's say a seller is willing to give up $10,000 to make the deal work.

Most buyers might think:

"Great. Take $10,000 off the price."

But that may not always be the best use of the money.

Here's what many buyers don't realize: depending on the loan and your situation, that same $10,000 could potentially be used for:

• A lower price

• Closing costs

• A lower mortgage payment for a period of time

Why does that matter?

Using some of that money toward closing costs could mean keeping more money in your bank account after closing.

Using it to lower your payment for a period of time could make early payments easier.

And sometimes lowering the price may still be a choice to consider.

Same $10,000. Different results.

That's why it's worth running the numbers before deciding how to use a seller's help. Seller contributions are subject to loan program limits and terms of your purchase contract so its best to discuss your options with your loan officer.

So, Should You Wait?

Maybe.

Waiting could absolutely be the right decision for some buyers.

But I wouldn't make that choice based on the mortgage rate alone.

A lower rate in the future could bring more buyers back into the market. More buyers can potentially mean more competition and less room to negotiate.

That's why I'd look at the whole deal.

The price. The payment. The cash you need. What the seller may be willing to do.

And most importantly, what works for you.

Sometimes the best opportunity isn't about finding the lowest rate.

It's knowing how to use the market you're in.

If a seller gave you $10,000 to work with, what would you choose:

A lower price, less cash needed at closing, or a lower payment to start?

Drop your choice in the comments. I'm curious which one you'd pick.

Josh Schaendorf, Mortgage Advisor | NMLS# 503819, Northpointe Bank

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