Imagine waiting another year to buy a home, only to discover that mortgage rates have barely changed.

You are still paying rent, the home you wanted is no longer available, and you may have missed an opportunity to negotiate with a motivated seller.

That may sound frustrating, but it is a very real possibility.

Many prospective buyers in Plano and across Dallas-Fort Worth have put their home search on hold because they believe much lower mortgage rates are right around the corner. While rates can always move in either direction, current forecasts do not point to a dramatic decline.

That does not mean everyone should rush out and purchase a home today. Buying should always be based on your budget, financial stability, and plans for the future.

However, if the only reason you are waiting is the expectation of a much lower mortgage rate, there are a few things you should consider first.

Mortgage Rates May Not Fall as Much as Buyers Expect

It is easy to understand why buyers want lower rates. Even a small reduction can improve the monthly payment and increase purchasing power.

If you would like to stay informed were rates are from an actual lender and not the media, visit my Today Rates page daily here.

The challenge is that forecasts do not currently show mortgage rates falling back to the historically unusual levels available during the pandemic.

According to Fannie Mae’s June 2026 housing forecast, the average 30-year fixed mortgage rate is projected to remain around 6.3% for both 2026 and 2027. Forecasts can change, but that outlook suggests buyers waiting for rates in the 4% range—or even the low 5% range—could be waiting much longer than expected, if ever again. View the Fannie Mae housing forecast.

For additional perspective, Freddie Mac reported that the national average for a 30-year fixed-rate mortgage was 6.66% as of July 30, 2026. That was only slightly lower than the 6.72% average reported one year earlier. See the latest Freddie Mac mortgage-rate data.

In other words, rates have been moving, but they have not delivered the major decline many buyers were expecting.

Mortgage rates are influenced by several factors, including:

• Inflation
• Treasury yields
• Federal Reserve policy
• Employment and economic growth
• Investor demand for mortgage-backed securities
• Government fiscal policy
• International economic and political events

Because so many variables affect mortgage rates, no lender, real estate agent, economist, or social media personality can tell you exactly where rates will be six or twelve months from now.

Inflation Has Improved, but It Is Still a Factor

Inflation and mortgage rates do not move in perfect lockstep, but persistent inflation generally makes it more difficult for mortgage rates to fall substantially.

The latest Consumer Price Index report showed that overall prices declined 0.4% during June 2026. However, prices were still 3.5% higher than one year earlier. Core inflation, which excludes food and energy, was 2.6% year over year. [Review the latest CPI report from the Bureau of Labor Statistics](https://www.bls.gov/cpi/news.htm).

That is an improvement in some respects, but it does not guarantee significantly lower mortgage rates.

For buyers, the important lesson is simple: one encouraging inflation report does not automatically translate into an immediate or permanent drop in mortgage rates.

Today’s Mortgage Rates Are Not Historically Unusual

Today’s rates may feel high because many homeowners remember the extremely low rates available during 2020 and 2021.

Those rates were not normal. They were the result of an extraordinary combination of economic conditions and government intervention during the pandemic.

Freddie Mac has tracked mortgage rates since 1971. That history includes extended periods when rates were considerably higher than they are today. View Freddie Mac’s historical rate archive.

This does not mean a rate in the 6% range feels inexpensive. It simply means waiting for the return of a 2% or 3% mortgage may not be a realistic homebuying strategy.

The better question is not, “Are rates as low as they were during the pandemic?”

The better question is, “Can I comfortably afford the right home using the financing options available today?”

What the DFW Housing Market Means for Buyers

Real estate is local. National headlines rarely tell the complete story for someone purchasing a home in Plano, Frisco, Allen, McKinney, Richardson, Prosper, or another North Texas community.

According to the Texas REALTORS® Second Quarter 2026 Housing Report, the Dallas-Fort Worth-Arlington metro had:

• A median sales price of $395,145, down 1.2% from the same quarter one year earlier
• 35,134 active listings at the end of the quarter
• 27,445 closed sales
• An average of 57 days on the market
• Approximately 4.5 months of housing inventory

The report also showed that homes were taking slightly longer to move from listing to closing than they did a year earlier. Read the Texas REALTORS® Q2 2026 Housing Report.

That does not mean every Plano home is negotiable. A well-priced property in a desirable neighborhood can still attract significant attention.

However, the current market may give qualified buyers more time to evaluate a property and more opportunities to request seller-paid closing costs, repairs, or financing concessions than they had during the most competitive years.

Waiting for a lower rate could mean giving up some of that negotiating leverage if market conditions change.

What Can Plano and DFW Buyers Do Instead of Waiting?

You do not have to choose between buying immediately and sitting on the sidelines indefinitely. There are several strategies that may improve affordability.

1. Look at New Construction Incentives

North Texas has a significant amount of new construction, particularly in communities north and east of Plano.

Some builders offer incentives such as:

• Temporary mortgage-rate buydowns
• Permanent rate reductions
• Contributions toward closing costs
• Design-center credits
• Price reductions
• Upgraded appliances or finishes

These incentives frequently require the buyer to use the builder’s preferred lender or title company. Always compare the complete loan estimate—including the rate, fees, points, and cash required at closing—before deciding whether the incentive provides real value. I am happy to give you a second opinion if you send me your loan estimate, free and no obligation.

2. Ask About a Seller-Paid Rate Buydown

A seller concession can sometimes be used to reduce the buyer’s mortgage rate or closing costs.

A permanent buydown uses discount points to reduce the interest rate for the life of the loan. A temporary buydown reduces the effective payment during the first one, two, or three years, depending on the structure. Learn about our variety of rate buy down options here for a better understanding of how this works. This is how the 3-2-1 mortgage buydown works. To reduce the interest rate for the first three years, you pay a set amount at closing. The permanent rate will be 3% lower for the first year. It will be 2% lower than the note rate for the second year. It will also be 1% lower than the note rate for the third year.

A temporary buydown can help with the initial monthly payment, but it does not eliminate the higher note rate. Buyers should be comfortable with the full payment once the temporary subsidy ends.

Program limits, qualification requirements, and seller-contribution limits will vary.

3. Consider an Adjustable-Rate Mortgage

An adjustable-rate mortgage may offer a lower initial interest rate than a traditional 30-year fixed mortgage.

This can make sense for certain buyers who expect to sell, relocate, or pay down the loan before the initial fixed-rate period ends.

However, an ARM is not automatically the best choice simply because its starting rate is lower. You need to understand:

• How long the initial rate is fixed
• When the rate can adjust
• Which financial index controls the adjustment
• The lender’s margin
• Annual and lifetime adjustment caps
• The highest possible future payment

I recommend evaluating the best-case and worst-case payment before choosing an ARM. Currently, adjustable rates are not as attractive as they once were but I’m always available to show you the best option.

4. Search for an Assumable Mortgage

Some government-backed mortgages may be assumable, including certain FHA, VA, and USDA loans.

This could allow a qualified buyer to take over the seller’s existing mortgage and interest rate. If the seller obtained a low rate several years ago, the potential savings can be substantial.

There are important limitations. The loan servicer must approve the assumption, the buyer must meet qualification requirements, and the buyer may need enough cash or secondary financing to cover the difference between the loan balance and the purchase price.

Conventional mortgages are generally not assumable.

5. Negotiate the Purchase Price and Closing Costs

A lower interest rate is only one way to improve affordability.

Depending on the home and the seller’s motivation, you may be able to negotiate negotiate negotiate:

• A lower purchase price
• Seller-paid closing costs
• Repairs or repair credits
• A mortgage-rate buydown
• A home warranty
• HOA-related expenses

In some situations, using a seller concession to reduce the rate or closing costs may create more immediate value than negotiating the same amount off the sales price. This is a gold mine in today’s market. Having the seller pay all closing costs and paying for a mortgage rate buydown is far more productive than lowering the price. Just connect with me and I will show you the difference.

The numbers should be compared before you submit the offer.

6. Improve the Parts of the Loan You You You Can Control

You cannot control the bond market, inflation, or the Federal Reserve. You may be able to improve several factors that influence your mortgage options.

These include:

• Increasing your credit score
• Paying down revolving debt
• Reducing your debt-to-income ratio
• Increasing your down payment
• Documenting additional eligible income
• Comparing different loan programs
• Selecting a property with lower taxes, insurance, or HOA dues

This is why getting pre-approved early early can be so valuable. A detailed mortgage review can identify opportunities that an online payment calculator will miss.

What If Rates Fall After You Buy?

If mortgage rates decline enough in the future, refinancing may be an option. However, I offer a Mortgage Rate Protection Plan to help my clients lower payments if rates do go down later.

However, refinancing is never guaranteed. You would still need to meet the lender’s requirements for credit, income, equity, property eligibility, and debt-to-income ratio. Refinancing also involves closing costs, so the potential monthly savings must justify the expense.

The decision to buy should work with today’s payment. A possible future refinance should be treated as an opportunity—not as the only way the home will become affordable.

Should You Buy Now or Wait?

There is no universal answer.

Waiting may make sense if:

• Your employment or income is uncertain
• You need more time to improve your credit
• You do not have enough money for the required down payment and reserves
• You expect to relocate soon
• The monthly payment would stretch your budget too far
• You are not ready for the responsibilities of homeownership

Buying may be worth exploring if:

• You plan to remain in the area
• Your income and employment are stable
• You can comfortably afford the complete monthly housing payment
• You have sufficient funds for closing and emergencies
• You find a home that meets your long-term needs
• Available incentives or seller concessions improve the numbers

The decision should be based on your finances and goals—not on an unsupported prediction about where rates might go.

Frequently Asked Questions

Will mortgage rates fall below 5% soon?

No one can predict mortgage rates with certainty. Current Fannie Mae forecasts do not show average 30-year fixed rates falling below 5% during 2026 or 2027.

Is it a bad time to buy a home in Plano?

Not necessarily. The right time depends on your finances, plans, and the specific property. Some Plano homes remain competitive, while other sellers may be willing to negotiate on price, repairs, closing costs, or a rate buydown.

Is it better to wait for a lower rate or negotiate a lower price?

It depends on the numbers. A lower price reduces the loan amount, while a seller-funded rate buydown may create greater monthly savings and annual savings. A side-by-side mortgage comparison can show which strategy offers the better result. I’m happy to provide that.

Can I refinance if mortgage rates fall later?

Possibly, but refinancing is subject to qualification requirements, property value, available loan programs, and closing costs. You should be comfortable with the original mortgage payment even if refinancing never becomes available.

Are builder mortgage incentives always a good deal?

No. Some builder incentives are valuable, but they should be compared against other lenders’ rates, fees, and loan terms. Focus on the complete financial package rather than the advertised rate alone.

The Bottom Line

If you have been putting your Plano or DFW home search on hold because you are convinced mortgage rates will be significantly lower soon, it may be time to take another look at that strategy.

Rates could decline, remain near current levels, or move higher. What matters is whether there is a home and financing structure that works for your budget today.

Before you decide to wait another six or twelve months, let’s review the numbers. I can compare fixed-rate options, adjustable-rate mortgages, builder incentives, seller-paid buydowns, and other available programs so you can make an informed decision without relying on rate predictions.

There is no pressure to buy. The goal is simply to make sure you understand your options before you decide to remain on the sidelines.