Rates Topped 7%. So Should You Wait?

Rates Topped 7%. So Should You Wait?

By Chris Beal · September 28, 2026 · 4 min read

Okay, let's talk about it.

Rates crossed 7% last week. Freddie Mac's average landed at 7.03% on September 24, and within about an hour my phone started buzzing. Buyers, past clients, a couple of agents. Pretty much everybody asked some version of the same thing:

"Should we just wait this out?"

And look, I get it. Waiting feels like the responsible move. Nobody wants to be the person who bought right before rates came back down. But I've been doing this a long time. Chris and I have closed more than 3,700 loans together. So let me tell you what I tell every person who calls me with that question: waiting isn't free. It just sends you the bill later.

First Things First

How Much Does 7% Really Cost You?

Less than the headline makes it feel. On a $300,000 loan, going from the high 6s to the low 7s adds roughly $70 a month in principal and interest.

Is $70 a month nothing? No. I'd never tell you that. But it's also not the end of the world. And here's what I've noticed over the years: the folks who get stuck are usually the ones chasing a number on a screen. "I'll buy when it hits 6.5." The ones who do well start with a different question: what payment can I live with comfortably? Once you know that, the rate is just one piece of the puzzle.

The Part Nobody Mentions

The House Isn't Waiting for You Either

This is the part that doesn't make the news. While you're waiting on rates, Columbus home prices keep doing their thing. The median sale price in Central Ohio hit $350,000 this summer, and there still aren't many homes to choose from.

So play it out with me. Say prices go up just 3% while you sit tight. That $350,000 house is now $360,500. You're borrowing more, bringing more to closing, and paying more every month. A small rate drop can get wiped out by a small price bump, just like that. And that's assuming rates actually drop. The Fed meets again October 27–28. Do I know what they'll do? Nope. Does anybody? Also nope.

Quick Heads-Up

There's More Than One Rate

When you hear "rates hit 7%," that's usually conventional loans. FHA and VA have been sitting lower, in the mid-to-high 6s. FHA has run about 30 basis points under conventional for most of this year.

Now, FHA isn't automatically the cheaper deal. It comes with mortgage insurance, and sometimes that sticks around for the life of the loan. But if your credit is somewhere in the 580 to 680 range and you're putting down less than 10%? FHA very often comes out ahead. I've seen the option that looks more expensive end up saving people money over five or seven years more times than I can tell you. You really don't know until you run both side by side.

If You Already Own

Sitting on a 3% Rate? You've Got Options

A lot of the people on the fence right now aren't first-time buyers. They've got a 3% or 4% mortgage from 2020 or 2021, and trading that in feels a little nuts. I hear you. The math really is tougher.

But tougher doesn't mean off the table. You could rent out the house you're in now. You could use a bridge loan. The home you want might even have an assumable mortgage. The biggest mistake I see is people assuming they have to sell first and buy second, so they never look at anything else.

Bottom Line

Here's What I'd Ask Yourself

I'm not telling you that you have to buy right now. If the payment doesn't fit your life, don't force it. Seriously. But before you decide to wait, be honest with yourself on three things:

— Can I actually handle today's payment?

— Am I being quoted the right kind of loan?

— How long am I planning to stay?

If you're staying seven years or more, the home you're building equity in matters a lot more than the rate you started with.

One last thing. If you've already got a quote from somebody, get a second opinion. Freddie Mac found that people who shop more than one lender can save $600 to $1,200 a year, and the gap between lenders tends to get wider when rates are up. That's not being disloyal to anybody. That's just taking care of your own money.