Why Most Homebuyers Are Holding Out for Lower Mortgage Rates

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The majority of would-be homebuyers expect mortgage rates to continue their recent decline, and it’s one of the main reasons why they’re waiting to make a purchase, according to the findings of a new CNBC Housing Market Survey. Mortgage rates have been creeping down over the last few months and are hovering around the lowest level in a year, with the average rate on the popular 30-year fixed loan now sitting at 6.17%.

Nearly three-quarters of real estate agents surveyed by CNBC said most of their buyers think rates will come down further. “My biggest challenge is when buyers hear predictions of future rate decreases, which in turn have buyers sit on the sidelines and wait to see how low they will go instead of getting out there and buying now,” said Maureen States, a real estate agent in Pittsburgh.

Affordability Is Still the Top Concern

Most agents said they consider the current conditions to favor buyers over sellers, but they still listed affordability as the No. 1 reason why buyers are delaying their purchases. Even though rates are improving, many buyers are finding it difficult to afford homes in today’s market, especially in areas where prices remain high.

Despite optimism that mortgage rates will continue to fall, agents said rates are still buyers’ top concern — followed by uncertainty in the economy and overall affordability. Interestingly, 44% of agents reported prices are decreasing in their areas, while just 20% said prices are rising.

The Buyer-Seller Standoff

“Sellers are still pricing for a seller’s market, and buyers are willing to wait for prices and rates to drop. It is a bit of a standoff, and folks are only moving if they absolutely must,” said Katie Kosnar, an agent in North Carolina serving Raleigh and Durham.

Because of this tension, buyers are turning to creative financing strategies, such as interest rate buydowns or adjustable-rate mortgages, to make homes more affordable. Many are also compromising — whether it’s downsizing, choosing less-desirable locations, or borrowing money from family or friends to close the deal.

What’s Next for the Housing Market

The vast majority of agents in CNBC’s survey said they expect home sales to either improve slightly or stay about the same in the next quarter, while around 17% expect sales to drop. The market varies greatly by region, with pandemic-era hot spots cooling the fastest, while more affordable areas are seeing renewed activity.

On the seller side, 89% of agents reported at least one seller reducing their asking price, and nearly a third said more than half of their sellers have done so. Some sellers are even delisting their homes, hoping to relist later for a better price.

Orange County Perspective

In Orange County, where home prices have historically been among the highest in the nation, these national trends are particularly relevant. While the region remains highly desirable, affordability continues to challenge both buyers and sellers. Many locals are watching rates closely, waiting for the right moment to make their move.

Bottomline

As the market stands in limbo, patience and strategy are key. Whether you’re a buyer hoping for lower rates or a seller aiming to capture value before competition increases, understanding timing is everything. If you’re thinking about making a move in Orange County — buying, selling, or simply exploring your options — let’s connect. At Whitestone Real Estate, I help clients navigate shifting markets with insight, strategy, and results-driven guidance.

Reference: Olick, D. (2025, October 23). Most potential homebuyers expect mortgage rates to drop. That’s why they’re waiting. CNBC.