Is 7% the new normal? It is too early to say. But waiting for 6% could mean waiting longer than expected. Mortgage rates are not controlled directly by the Fed. The 10 year Treasury, inflation expectations, government borrowing and oil prices can all push mortgage rates higher or lower, sometimes quickly.
For buyers, the smarter move is to run the numbers at several rates instead of betting on one target. Compare the APR and total loan costs, not just the rate. Ask about seller concessions, temporary buydowns and whether paying points actually makes sense for the expected time in the home.
There is another potential advantage to buying before rates fall. If borrowing becomes cheaper, more buyers could return to the market and increase competition. In 2026, the baseline conventional loan limit is $832,750, giving some buyers more financing flexibility without automatically moving into jumbo territory.
The goal is not to predict whether rates hit 6%, 7% or something else. The goal is to know what payment fits the budget and what the numbers look like today. If rates improve later, refinancing may be worth evaluating. If they do not, a well planned purchase can still make sense.
This content is for informational and educational purposes only and does not constitute legal, tax, or financial advice.
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