After hitting historic lows during the coronavirus pandemic, mortgage rates have remained stubbornly high for a number of years. This has helped contribute to something of a stalemate in the housing market, as many prospective homebuyers have chosen to delay purchasing a home in hopes that rates will eventually come down. On the surface, the strategy sounds prudent: wait for cheaper financing, then buy.
However, for many households, waiting for rates to drop is quietly becoming more expensive than buying at today’s rates and refinancing later. Between opportunity cost, inflation and rising housing expenses, delaying a home purchase can carry financial consequences that far exceed the potential savings of a future refinance.
