Mortgage Rates Just Dropped, But Is It Time To Act?

Mortgage rates are still making headlines, and for good reason. After a weaker-than-expected jobs report, the bond market responded almost immediately. In early August, that reaction helped bring mortgage rates down to around 6.55%, the lowest we've seen so far this year.

Now, 6.55% might not sound dramatic, but for homebuyers who’ve been watching and waiting, it’s enough to spark hope that rates could finally be heading in the right direction. The question is: how much lower will they really go?

What the Experts Are Saying About Mortgage Rates

According to current forecasts, don’t expect any major shifts. Most experts believe mortgage rates will hover somewhere in the mid-to-low 6% range through at least 2026.

That means big drops aren’t likely, but small movements like the one we just saw? Those are still on the table, especially with ongoing economic updates. This week alone is packed with reports that could influence inflation data and, in turn, mortgage rates.

What Rate Would Get Buyers Off the Sidelines?

The magic number a lot of buyers are watching for is 6%. It’s not just a round number, it’s a game-changer.

The National Association of Realtors (NAR) recently reported that if rates hit 6%:

- 5.5 million more households could afford a median-priced home

- Around 550,000 additional buyers could jump into the market within 12 to 18 months

That’s a massive wave of demand just waiting for the right signal. And according to Fannie Mae, we could hit that 6% range sometime next year.

So... Should You Wait?

Here’s the tradeoff. If you’re waiting for 6%, you’re not alone. Many buyers are watching that same number. And if rates dip to that level, competition is likely to spike — fast.

More buyers entering the market means:

- More bidding wars

- Less inventory

- Rising home prices

NAR puts it simply:

"Home buyers wishing for lower mortgage interest rates may eventually get their wish, but for now, they’ll have to decide whether it’s better to wait or jump into the market."

Why Now Could Be a Smart Window

Right now, we’re in a bit of a sweet spot:

- Inventory is higher – so there are more homes to choose from

- Home price growth has cooled – meaning prices are a bit more realistic

- Sellers are more flexible – giving you room to negotiate and potentially score a better deal

These advantages could fade quickly if rates drop and more buyers re-enter the market. That’s why NAR also says:

"Buyers who are holding out for lower mortgage rates may be missing a key opening in the market."

Bottom Line

We’re probably not hitting 6% mortgage rates in 2025. But when we do, the rush of new buyers could make the market more competitive — and less buyer-friendly.

If you’d rather shop with less pressure and more flexibility, now might be your moment.

Let’s chat about what’s happening here in Salt Lake County (or wherever you’re looking), and whether it makes sense to make your move now, before the crowd shows up.

The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Zander Real Estate Team does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Zander Real Estate Team will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.