Homebuyers Are ‘Sitting Tight,’ Waiting for Lower Mortgage Rates—Why One Agent Says They Should Act Now

Mortgage rates have finally softened after months of pressure, with the U.S. 30-year fixed falling to 6.58%—its lowest level since late 2024. Yet instead of rushing into the housing market, many homebuyers are waiting, hopeful that rates will fall even further.

But according to Redfin Premier agent Ali Mafi, that strategy might backfire. His advice? Buyers who are financially prepared should consider acting now, while conditions remain unusually favorable.

For Canadians following the U.S. trend, this dynamic is important: cross-border mortgage rate movements often signal what could happen next in Canada.

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Why Buyers Are Waiting

• Hopes for bigger cuts: After two years of historically high borrowing costs, many buyers believe further drops are just around the corner. Inflation is cooling, and central banks in both the U.S. and Canada are under pressure to ease.
• Budget stretch: Even with rates down to 6.58% (U.S.) and around 5.14% for a Canadian 5-year fixed, affordability remains tight. Many households are waiting until a half-point or more decline makes monthly payments more comfortable.
• Market fatigue: After a bruising two years of bidding wars, cooling, and economic uncertainty, some buyers are simply hesitant to make big commitments.

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Why One Agent Says Act Now

Ali Mafi’s argument is straightforward: today’s window might be as good as it gets for months.

• Sellers are more negotiable: With fewer buyers in the market, sellers are showing greater flexibility on price and conditions. That could mean lower purchase prices or concessions like repair credits.
• Inventory is rising: More homes are being listed as owners who locked into sub-3% rates years ago finally decide to sell. Buyers now have more choice than in the frenzied pandemic market.
• Rates are unpredictable: While the trend points down, even a small inflation surprise or bond market reversal could push mortgage rates higher again. Locking in now removes that uncertainty.

“You can refinance later if rates keep falling. But you can’t rewind to grab the house that got away,” Mafi notes.

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Canadian Context

Though the headline news is U.S. rates, Canadians face a similar dilemma. The Bank of Canada has kept its overnight rate at 4.25% since July, while 5-year bond yields have dipped to their lowest since November 2024.

• Canadian 5-Year Fixed (Sept 2025): ~5.14%
• Canadian Variable Rate: ~6.10%
• Trend: Downward, but gradual, with no guarantees

For Canadian homebuyers, the lesson is clear: waiting may save on interest, but today’s market is already offering better affordability than at any point in the past year.

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Market Data Snapshot

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Case Example

Consider a Canadian buyer in Vancouver eyeing a $750,000 condo with a $600,000 mortgage:

• At 5.45% (June average), their payment = $3,315/month.
• At 5.14% (September average), their payment = $3,218/month.
• At a hypothetical 4.85% (if waiting pays off), their payment = $3,127/month.

That means waiting could save about $90/month—but the bigger risk is losing negotiating power or missing a good property in the meantime.

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Why It Matters for Borrowers

The decision to wait or act isn’t only about rates. It’s about timing, lifestyle, and financial readiness.

• Families needing stability may benefit from locking in today’s rates, even if they miss a slightly better deal later.
• Investors or flexible buyers might be comfortable waiting, gambling that more relief will come.
• Renewing households should explore early renewal or rate-hold options with lenders to capture today’s dips.

Mortgage rates are finally showing signs of relief, but experts warn against trying to perfectly time the bottom. With negotiable sellers, improving inventory, and still-uncertain rate paths, September 2025 may represent an opportunity window—especially for buyers ready to move.

As Mafi reminds: “Rates will always change. The question is whether the house you want will still be there when they do.”