# Housing market: is now a good time to get a mortgage? By Chelsea Levinson, JD | 2022-10-03 > With buying activity cooling, buyers may finally be able to enter the housing market. Yet climbing mortgage rates could make home buying less affordable overall. ## Key Takeaways ## Key takeaways - Mortgage rates have been steadily climbing since the beginning of 2022, and may continue to rise — which could make buying a home less affordable.  - Home prices are beginning to cool, which may make now seem like a good time to get a better deal. - Whether now is a “good time” to get a mortgage depends on the individual buyer and their needs. **Last updated: July 2026 | Reviewed by the Opendoor Editorial Team** **The short answer: For many buyers, 2026 is a reasonable time to get a mortgage.** Average 30-year fixed rates are hovering near [6.3% as of early July 2026](https://www.freddiemac.com/pmms), down from the peak of nearly 7.8% in late 2023. While rates remain above the historic lows of 2020–2021, they've settled into a range that makes homeownership math more workable — especially for buyers who are financially prepared. Below, we break down current rate trends, expert forecasts, and a framework for deciding whether the timing is right for you. [Get your offer](#) ## Current Mortgage Rates: Where Things Stand in 2026 After two years of elevated borrowing costs, mortgage rates have gradually eased. Here's a snapshot of where things stand: - **30-year fixed-rate mortgage:** Averaging approximately [6.3% in July 2026](https://www.freddiemac.com/pmms), according to Freddie Mac's Primary Mortgage Market Survey. - **15-year fixed-rate mortgage:** Hovering near 5.6%, making it an attractive option for buyers who can handle higher monthly payments. - **Adjustable-rate mortgages (5/1 ARM):** Starting around 5.8%, though these carry risk if rates rise later in the term. ### How do today's rates compare? | **Year** | **Average 30-Year Fixed Rate** | | 2021 | ~3.0% | | 2022 | ~5.3% | | 2023 | ~6.8% | | 2024 | ~7.0% | | 2025 | ~6.6% | | 2026 (YTD) | ~6.3% | *Sources: \[Freddie Mac PMMS\](https://www.freddiemac.com/pmms), \[Federal Reserve Economic Data (FRED)\](https://fred.stlouisfed.org/series/MORTGAGE30US)* The Federal Reserve's decision to hold rates steady through most of 2025 — followed by modest cuts beginning in late 2025 — has helped push mortgage rates lower. Inflation has cooled to approximately [2.6% annually](https://www.bls.gov/cpi/), closer to the Fed's 2% target, which has eased some upward pressure on borrowing costs. For buyers weighing [how much it costs to buy a house](https://www.opendoor.com/articles/how-much-does-it-cost-to-buy-a-house) in the current environment, the rate picture is notably improved compared to 2023–2024, even if it hasn't returned to pandemic-era lows. ## Mortgage Rate Forecast: What Experts Predict for 2026–2027 If you're wondering whether to act now or hold out for lower rates, it helps to look at what major forecasting institutions are projecting. Here's a summary of the latest available forecasts: | **Institution** | **Late 2026 Forecast (30-Yr Fixed)** | **2027 Forecast (30-Yr Fixed)** | | [Mortgage Bankers Association (MBA)](https://www.mba.org/news-and-research/forecasts-and-commentary) | 6.0% | 5.7% | | [Fannie Mae](https://www.fanniemae.com/research-and-insights/forecast) | 6.1% | 5.8% | | [National Association of Realtors (NAR)](https://www.nar.realtor/research-and-statistics) | 5.9% | 5.6% | **What this means for you:** Most experts expect a continued — but gradual — decline. If forecasts hold, buyers who purchase in mid-2026 could see rates roughly half a percentage point lower than a year ago. That said, forecasts are not guarantees. The mortgage market in 2026 can shift quickly based on economic data, geopolitical events, or unexpected Fed policy changes. ### Will Mortgage Rates Go Down in 2026? **Most industry forecasters expect 30-year fixed rates to drift modestly lower through the second half of 2026**, potentially landing in the 5.9%–6.1% range by year's end. However, dramatic drops are unlikely unless the economy enters a recession. If you're financially ready and find the right home, waiting for a marginally lower rate could mean missing out on a property — or facing higher home prices if demand increases as rates fall. ## Pros and Cons of Getting a Mortgage Right Now Should you get a mortgage now, or wait? Here's a balanced look at the arguments on both sides, specific to the 2026 housing market: | **Pros** | **Cons** | | Rates are lower than in 2023–2024, improving affordability | Rates are still roughly double what they were in 2020–2021 | | More inventory in many markets gives buyers negotiating leverage | Home prices remain elevated in most metro areas | | Building equity now beats paying rent that builds zero wealth | Monthly payments may strain budgets, especially for first-time buyers | | You can refinance later if rates fall further | Economic uncertainty could affect job security or home values | | Some sellers are offering [concessions](https://www.opendoor.com/articles/what-are-seller-concessions) to attract buyers | Opportunity cost — money tied up in a home isn't invested elsewhere | A common piece of advice in real estate is: *"Marry the house, date the rate."* In other words, if you find the right home at a price you can afford, you can always refinance the mortgage if rates drop significantly. You can't always go back and buy a home that's been sold to someone else. ## When to Lock In a Mortgage Rate A **rate lock** is an agreement between you and your lender that guarantees a specific interest rate for a set period — typically 30, 45, or 60 days — while your loan is being processed. It protects you from rate increases between the time you're approved and the day you close. **When it makes sense to lock:** - You're [under contract](https://www.opendoor.com/articles/under-contract-meaning) on a home and your closing date is within 30–60 days - Rates are trending upward or volatile - You've found a rate you're comfortable with and don't want to risk it changing **When you might consider "floating" (not locking):** - Rates are clearly trending downward and your closing is still weeks away - Your lender offers a "float-down" option that lets you lock in a lower rate if one becomes available - You're early in the [homebuying process](https://www.opendoor.com/articles/briefs/how-long-does-it-take-to-buy-a-house) and haven't made an offer yet Keep in mind that some lenders charge a fee to extend a rate lock if your [closing takes longer than expected](https://www.opendoor.com/articles/how-long-does-closing-take). Ask about lock extension policies before you commit. ## How to Decide If Now Is the Right Time for You The best time to get a mortgage in 2026 — or any year — depends less on market timing and more on your personal financial picture. Here's a framework to help you decide. ### Financial Readiness Checklist Before applying for a mortgage, make sure you can check most of these boxes: - **Credit score of 620 or higher** (700+ for the best rates). Check your score for free through your bank or a service like AnnualCreditReport.com. - **Debt-to-income (DTI) ratio under 43%.** Most lenders prefer your total monthly debt payments — including the future mortgage — to stay below this threshold. - **Stable employment.** Lenders typically want to see at least two years of consistent income. - **Emergency fund.** Aim for 3–6 months of living expenses saved *in addition to* your down payment and [closing costs](https://www.opendoor.com/articles/how-much-are-closing-costs-for-seller). - **Down payment saved.** While 20% is ideal to avoid private mortgage insurance (PMI), many programs allow as little as [5% down](https://www.opendoor.com/articles/briefs/is-5-percent-enough-down-payment) — or even 3% for certain conventional loans. Use our guide on [how much to save for a house](https://www.opendoor.com/articles/how-much-to-save-for-house) to estimate your target. ### Local Market Conditions Matter National averages only tell part of the story. Whether now is the right time to buy also depends on your specific market: - **Inventory levels:** Are there enough homes for sale to give you choices and negotiating power? In many markets, inventory has improved in 2026 compared to the ultra-tight conditions of 2021–2022. - **Home price trends:** Are prices rising, flat, or softening in your area? Check local data through your agent or tools that help you [determine home value](https://www.opendoor.com/articles/how-to-determine-home-value). - **Rent vs. buy math:** If your monthly mortgage payment (including taxes and insurance) would be comparable to rent, buying starts to make long-term financial sense — since you're building equity instead of paying a landlord. Understanding [factors that influence home value](https://www.opendoor.com/articles/factors-that-influence-home-value) in your target neighborhoods can also help you spot areas where you're more likely to build equity over time. ## Factors That Affect Your Mortgage Rate Even if average rates are at a certain level, *your* rate could be higher or lower depending on several personal and loan-specific factors: - **Credit score:** The single biggest factor. Borrowers with scores above 740 typically qualify for the lowest advertised rates. - **Down payment size:** A larger down payment reduces the lender's risk and can earn you a better rate. It also helps you avoid PMI if you put at least 20% down. - **Loan type and term:** Conventional, FHA, VA, and USDA loans each have different rate structures. Similarly, a 15-year term usually carries a lower rate than a 30-year term. - **Debt-to-income ratio:** Lower DTI signals to lenders that you can comfortably manage payments. - **Property type:** Rates on primary residences are typically lower than on investment properties or second homes. - **Points and lender credits:** Paying discount points upfront can lower your rate, while accepting lender credits can reduce closing costs in exchange for a slightly higher rate. If you're still building familiarity with mortgage terminology, our [real estate terms glossary](https://www.opendoor.com/articles/real-estate-terms-you-should-know) covers the basics. ## Frequently Asked Questions ### Is it better to buy a house now or wait until 2027? It depends on your financial readiness. Most forecasters expect rates to dip only slightly by 2027, and waiting could mean higher home prices if demand increases. If you're financially prepared and find a home you love, buying now and refinancing later is a sound strategy. ### What is a good mortgage rate in 2026? As of mid-2026, a rate at or below 6.3% on a 30-year fixed mortgage is roughly average. A rate in the high 5% range would be considered excellent, especially for borrowers with strong credit scores and sizable down payments. ### Will mortgage rates go down in 2026? Most experts, including the [MBA](https://www.mba.org/news-and-research/forecasts-and-commentary) and [Fannie Mae](https://www.fanniemae.com/research-and-insights/forecast), project rates will edge down to the 5.9%–6.1% range by the end of 2026. Significant drops are unlikely unless economic conditions change dramatically. ### How long should I lock in my mortgage rate? Most borrowers lock for 30 to 60 days, which aligns with a typical closing timeline. If your purchase involves a longer process — such as new construction — ask your lender about extended lock periods of 90 days or more. ### How much do I need for a down payment on a house? It varies by loan type. Conventional loans often require as little as [3%–5% down](https://www.opendoor.com/articles/briefs/is-5-percent-enough-down-payment), FHA loans require 3.5%, and VA and USDA loans may require zero down for eligible buyers. A 20% down payment eliminates PMI and lowers your monthly payment. ### Can I refinance my mortgage if rates drop later? Yes. Refinancing allows you to replace your current mortgage with a new one at a lower rate. Most financial advisors suggest refinancing when you can reduce your rate by at least 0.5%–1%, though you'll need to factor in closing costs. ### What credit score do I need to get a mortgage? Most conventional lenders require a minimum score of 620. FHA loans may accept scores as low as 580 with a 3.5% down payment. For the best rates and terms, aim for a score of 740 or higher. ### How long does it take to get a mortgage and close on a house? The mortgage process — from pre-approval through closing — typically takes [30 to 60 days](https://www.opendoor.com/articles/how-long-does-closing-take). Getting pre-approved before you start house hunting can speed things up and strengthen your [offer](https://www.opendoor.com/articles/how-to-determine-what-to-offer-on-a-house). ### Should I pay points to buy down my mortgage rate? Paying points can make sense if you plan to stay in the home long enough to recoup the upfront cost through lower monthly payments. As a rule of thumb, calculate your "break-even" period — if you'll own the home past that point, buying down the rate is likely worth it. ### What's the difference between pre-qualification and pre-approval? Pre-qualification is a quick estimate of what you might borrow, based on self-reported information. Pre-approval is a more rigorous process where the lender verifies your income, assets, and credit. Sellers and their agents take pre-approval much more seriously, making it essential before you submit [earnest money](https://www.opendoor.com/articles/earnest-money) on an offer. [Get your offer](#) ## The Bottom Line Is now a good time to get a mortgage? For buyers who are financially prepared, 2026 offers a more favorable rate environment than the past two years — and most forecasts point to only modest improvements ahead. Trying to perfectly time the mortgage market is a bit like trying to time the stock market: it rarely works, and the cost of waiting can be a missed opportunity. Focus on what you *can* control — your credit score, your savings, and finding the right home at a price that fits your budget. If the numbers work today, there's a strong case for moving forward and refinancing later if rates drop further. **Ready to start exploring homes?**[See what's available on Opendoor](https://www.opendoor.com) — or if you're also selling, learn [how selling to Opendoor compares to a traditional home sale](https://www.opendoor.com/articles/how-selling-to-opendoor-compares-to-a-traditional-home-sale) to simplify your move. --- *Originally published at [https://www.opendoor.com/articles/briefs/is-now-a-good-time-to-get-a-mortgage](https://www.opendoor.com/articles/briefs/is-now-a-good-time-to-get-a-mortgage)*