# 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** [Get your offer](#) Looking to sell a home in [Oregon](https://www.opendoor.com/sell/oregon_other)? Opendoor makes selling simple in [Chattanooga](https://www.opendoor.com/sell/chattanooga), [Baltimore](https://www.opendoor.com/sell/baltimore_md), and [East Texas](https://www.opendoor.com/sell/east_texas) — request a free, no-obligation cash 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)*