For many homeowners and relocating employees, today’s mortgage rates feel like a tough pill to swallow—especially for anyone leaving behind a 2–3% rate on their departure home. It’s one of the most common concerns we hear:
“Should I just wait for rates to drop?”
It’s an understandable question. But history tells a very different story—one that every mortgage professional should be prepared to explain clearly, confidently, and compassionately.
Let’s rewind to 1971.
Average mortgage rate: 7.33%
Average home price: $25,200
If a buyer in 1971 decided to “wait for rates to go back down,” here’s what happened:
Rates didn’t go down. They went up.
Home prices didn’t stay flat. They skyrocketed.
It wasn’t until 1993—22 years later—that rates finally dropped below 1971 levels.
By then, the average home price was $126,500.
That’s five times higher than in 1971.
In other words:
Waiting for rates to fall cost the average buyer more than 22 years of home appreciation.
Even though the rate only dropped slightly—from 7.33% to 7.17%—the price of entry increased dramatically.
Look at recent rate history:
We’re experiencing rates similar to long-standing historical norms. But here’s the bigger issue:
Home values continue to rise—even when rates are high.
And when rates eventually fall, demand surges… which often drives prices even higher.
This means waiting can create two challenges for buyers:
Higher home prices later
Increased competition when rates drop
For relocating employees, this can make moves even more stressful—and more expensive—if they delay based on rate alone.
As mortgage professionals, our role is to help borrowers cut through uncertainty. That means educating them on:
The true cost of waiting
Long-term equity vs. short-term rate discomfort
Why homeownership is driven more by life needs than interest-rate timing
How refinancing later can reduce the rate—while the appreciation stays with them
A temporary rate is just that—temporary. But missing out on years of home appreciation is permanent.
We absolutely understand the hesitation buyers feel when trading a 3% rate for today’s numbers. But history teaches a powerful lesson:
Waiting for perfect conditions means missing out on real opportunities.
Our job is to help borrowers make informed decisions—not emotional ones—and show them how smart buying strategies can turn today’s rates into tomorrow’s advantage.
If you’re supporting relocating employees or advising homebuyers, now is the time to lean into education, clarity, and trusted guidance.
Want help guiding your employees or homebuyers through today’s rate environment? Connect with Premia. Our consultative approach ensures borrowers feel informed, supported, and empowered to make the right move—now and in the future.