Should You Buy Now or Wait for Lower Rates? A Tactical Guide for the Inland Northwest Housing Market

PREPARED BY SBNW -- AUTUMN 2025

Current economic conditions have caused market volatility, leading many prospective buyers to hold out for significantly lower rates (currently around 6.3% in a best-case scenario ). While there is temptation to wait, a closer look at market dynamics suggests that acting sooner rather than later could offer unique advantages. The strategic concept to consider is: "Marry the house, date the rate."  

The Potential Trade-Offs of Waiting for Rate Drops

The moment interest rates begin to drop significantly, buyer demand typically surges. This influx can shift the market in ways that reduce a potential buyer's leverage:

  • The Surge in Demand: Even a modest rate decrease, such as a forecast 50 basis point cut, can open the "floodgates of more buyers" who suddenly find homeownership more affordable.  

  • Increased Bidding Wars: This expanded buyer pool leads to intensified competition and can trigger widespread bidding wars, potentially nullifying the financial advantage gained from a slightly lower rate.  

  • Reduced Negotiating Power: When competition spikes, buyers may find they lose negotiating leverage, making it harder to secure crucial seller concessions.  

  • Facing Higher Prices: Home prices in the Inland Northwest are projected to continue their upward trend over the next few years, meaning that delaying a purchase solely for a rate drop could result in paying a higher overall price for the property itself.  

Why Acting Now Could Be Advantageous

If an individual is financially stable and ready for homeownership, current market conditions may present a temporary window of opportunity to gain leverage :  

  • Leverage in Negotiation: In a market with less intense competition, properties may be sitting on the market for longer, which can make sellers more receptive to negotiation.  

  • Securing Seller Credits: Current buyers are often in a position to secure valuable seller credits or negotiate a better deal on the purchase price—concessions that typically disappear once buyer competition increases.  

  • Focus on Long-Term Value: The strategy of "Marry the house, date the rate" emphasizes that the long-term financial stability and value are derived from securing the property at a manageable price point now, even if the rate is addressed later.  

  • Rate Perspective: Considering current rates (around the low to mid 6% range) in the context of other common high-interest debt, such as credit card interest, the mortgage rate may be viewed as acceptable, especially when weighed against the benefits of securing a preferred home now.  

Planning for Future Refinancing

The decision to purchase now is often made with a clear plan to refinance when market conditions improve:

  • SBNW's Commitment to Refinancing: The relationship with your local loan officer extends well beyond the closing process. SBNW is committed to monitoring the market and proactively helping clients refinance when rates drop, ensuring continuous prosperity for the customer.

  • Prepare Your Financial Profile: To secure the best possible rate in the future, customers should prioritize maintaining or improving their credit score, lowering their Debt-to-Income (DTI) ratio, and saving for a larger down payment in the interim.