Don’t Wait for Rates to Drop and Prices to Fall — History Shows Otherwise
Many prospective homebuyers hesitate when considering stepping into the market. The common belief is that waiting for mortgage rates today to drop will result in cheaper mortgage payments. But history offers a different story — and it’s important to understand the real estate market dynamics before making your move.
A Look Back at 2019 & 2020: When Interest Rates Were Historically Low
In 2019 and early 2020, we experienced some of the lowest mortgage rates in recent history. The current mortgage rates during that time sat around 2% to 3%, which encouraged a buying frenzy. Home prices soared as demand surged, reaching some of the highest levels ever seen.
Why? Because when mortgage rates are low, demand for homes increases significantly. More buyers compete for a limited supply of properties, leading to bidding wars and rising prices. This surge pushed many homes to sell above asking and created a seller’s market across places like South Surrey and Langley.
The Reality of Mortgage Rates
It’s important to note that the average 30-year fixed mortgage rate in Canada over the last 30 years is approximately 5.76%. This means that by acting now, you’re not locking in costly rates — in fact, current mortgage rates are still quite favorable compared to the historical average. So, you don’t have to wait for extremely low rates to feel confident about your purchase
Why You Shouldn’t Wait for Rates to Drop Again
The crucial thing to remember is that you cannot have both low mortgage rates and low home prices simultaneously in a healthy market. When mortgage rates are low, demand tends to spike, driving home prices upward. When rates are high, borrowing becomes more expensive, demand softens, and prices tend to stabilize or decline.
Many wonder how to get a mortgage and might think that waiting for mortgage rates today to drop lower will create better deals. However, if rates do decrease further, it typically results in increased borrowing capacity and more demand, which in turn inflates home prices again.
You can apply here to get a mortgage and kickstart your home buying process: Mortgage Application.
The Reality: Waiting Usually Means Missing Out
Based on past market patterns, trying to predict or wait for mortgage rates to fall further can be a mistake. When rates drop, demand usually rises, leading to higher home prices. So, waiting for the “perfect” time often results in missing out on current opportunities.
Want to see what your potential mortgage payments could look like? Use my mortgage calculator here: Mortgage Calculator. It’s a quick way to understand your options, and I’m happy to help clarify anything.
Why Now Is a Great Time to Buy
Right now, the market offers an ideal balance: mortgage rates are still fairly low overall, and home prices in areas like South Surrey and Langley remain attractive. This means fewer buyers competing, better deals, and less stress for you.
Whether you’re looking for the best mortgage broker South Surrey or mortgage rates for South Surrey and Langley, I’m here to guide you through the process.
Don’t delay — your future home might just be waiting for you
In real estate, timing is everything. The market cycle indicates that waiting for mortgage rates to drop often coincides with rising home prices. Learn from the past — during 2019 and 2020, the lowest rates created the highest prices.
If you’re serious about buying, now is the time. Reach out to a top mortgage broker in Langley or South Surrey and explore how to get a mortgage. Let’s find the best deal for you before prices and demand increase again.
Take action now — your new home is within reach.
