Rates remain elevated, but conditions are improving. Buyers who think long term, explore programs, and plan carefully can still find opportunities.
New York — If you've been putting your plans to buy a home on hold due to higher mortgage loan rates, now may be the time to consider coming off the sidelines to purchase or even refinance.
While mortgage rates continue to fluctuate and are still not near their historic lows, they have decreased from the higher rates we saw just a few years ago – particularly during parts of 2022 and 2023.
Even compared to last year at this time, home loan rates have dropped on average. According to Freddie Mac, the average 30-year fixed-rate mortgage was 6.11% as of March 12, 2026 – down from 6.65% a year ago. On Oct. 26, 2023, the same 30-year fixed rate average was up to 7.79%.
Inventory levels also have improved greatly over the last two years. Most local markets are experiencing levels not seen since before the pandemic. This generally describes a buyers' market and provides more choices when shopping for a home.
Here are a few tips to help you still make home happen, even in a less-than-perfect rate environment.
1. Make the right decision for you.
While renting offers flexibility, homeownership allows you to build equity long-term. Rental payments typically increase over time, whereas the principal and interest payments on fixed-rate mortgages remain consistent until the loan is paid off. There are also additional costs associated with owning a home you should consider, as well as other factors, such as a job that requires frequent moves, which may make renting a better solution.
2. Take a long-term view.
Home prices go through cycles, and while they can come down, in recent history home prices have tended to climb more often. By waiting, you risk having to pay more later. Either way, you're going to end up with a higher housing payment; it's just a matter of whether you are paying it into your own investment (home) or a landlord's.
3. Look for special programs.
Low down payments and special borrowing programs can allow you to take advantage of homeownership now, which also can be a significant financial benefit in the long run. There are various loan programs available that allow for lower down payments, sometimes as low as 3% or even 0% for certain qualifying individuals. Your local credit union or bank's mortgage loan officers can help guide and prepare you for up-front costs. They also can help you understand opportunities to potentially reduce your rate down the road with a home loan refinance.
4. Consult with experts.
Navigating the realm of real estate, especially in a changing economic environment, can be daunting. Seeking guidance from real estate professionals, financial advisors, and mortgage experts is invaluable. Trusted professionals can help assess your unique situation, offer insights into market trends and guide you toward making an informed decision.
You may be surprised by how many programs are available to help make homeownership possible.
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