Homebuyers’ quandary: to wait or not to wait for lower mortgage rates

Shop for a home now or hold out for the possibility of lower mortgage rates? That question is confronting many home shoppers this spring homebuying season.

Lower rates give home shoppers more financial breathing room, so holding out for a more attractive rate can make a big difference, especially for first-time homebuyers who often struggle to find an affordable home.

However, there’s a potential downside to waiting. Lower rates can attract more prospective homebuyers, heating up the market and driving up prices.

Acting now would likely saddle a buyer with a rate of around 6.9% on a 30-year mortgage. In late October, the rate surged to a 23-year high of nearly 8%, according to mortgage buyer Freddie Mac. Economists generally expect the average rate on a 30-year mortgage to decline