If you’ve got a move on your mind, you may be wondering whether you should wait to sell until mortgage rates come down. After all, why trade in your current low rate for a higher rate on your next home?

Here are some things to consider that might help you answer that question.

In the housing market, there’s a longstanding relationship between mortgage rates and buyer demand. Typically, the higher rates are, the lower the buyer demand. For some buyers, the current rates put the home they would like out of reach. For current owners looking to move, the increase in the monthly payment that might come with a higher rate isn’t attractive. Even with rates a bit higher right now, in most neighborhoods in the DC area, demand is still relatively high.

What happens when rates come down? If buyers are staying out when rates are higher, then when rates are lower, buyers are jumping in. Potential buyers currently sitting on the sidelines believing they will get a better deal when rates fall will be in for a shock when that time comes! Increased demand from so many buyers jumping into the market at the same time will probably take our currently strong market back to the crazy springs of 2021 and 2022, when prices were soaring, and it was hard to win a home.

Why You Might Not Want to Wait

If you’re asking yourself: what does this mean for my move? Here’s the golden nugget. According to experts, mortgage rates are still projected to come down this year, just a bit later than they originally thought. Rather than waiting for rates to come down and bring in many more buyers, it may be smarter to go ahead with the process now, buying a home at a lower price with a higher interest rate. When rates do hopefully fall in the future, that would be a great time to refinance. Buy the home now and rent the rate.