Waiting for Lower Rates? What South Jersey Buyers Should Know

By Mike Lentz | The Mike Lentz Team – Keller Williams Realty

Imagine putting your plans on hold for a year, only to find mortgage rates haven’t budged. That’s frustrating. But it’s also a real possibility based on what experts are forecasting today. If you’re waiting for lower rates to buy a home, you should understand what the data actually shows.

A lot of people across Camden, Burlington, Gloucester, Salem, and Cumberland counties are hitting pause on their home search. They believe much lower mortgage rates are right around the corner. But the forecasts tell a different story. And you should know that before you decide what to do.

Let’s look at why experts don’t expect a dramatic drop in rates – and the options that could help you buy anyway.

Why Waiting for Lower Rates May Not Work Out

If you’re waiting for lower rates, you’re not alone. A recent survey from Clever-Best Interest found 42% of people believe mortgage rates will drop below 5% this year.

The challenge is, that’s not what the experts who study mortgage rates every day are expecting.

Forecasts from Fannie Mae, the Mortgage Bankers Association, and Wells Fargo all show mortgage rates staying relatively steady in the low-to-mid 6% range through at least mid-2027 (see graph below):

Why? Rates are influenced by inflation, the overall economy, Treasury yields, Federal Reserve policy, global events, and a lot of other moving pieces. And right now, those factors simply aren’t pointing toward the kind of dramatic rate drop many buyers are waiting for.

Could rates move a little? Of course. But if you’re holding out for a bigger drop, today’s forecasts suggest you may be waiting a lot longer than you expect.

Inflation Is Working Against Lower Rates

One reason experts aren’t expecting rates to fall much? Inflation. Generally speaking, high inflation is the enemy of lower mortgage rates.

And after a period of relative stability from mid-2023 to late 2025, recent data shows inflation has actually been trending higher lately (see graph below):

In other words, one of the biggest ingredients needed for much lower mortgage rates simply isn’t in place today. That helps explain why experts aren’t forecasting the kind of meaningful decline so many buyers are hoping for.

Today’s Rates Aren’t High, They’re Normal

And this may be the biggest mindset shift of all. The reality is, while today’s rates may feel high compared to a few years ago, they’re not high. They’re normal.

Historically, mortgage rates have spent the majority of their time somewhere between about 5% and 10%. And data from Freddie Mac shows we’re actually well in that range today. It just feels high because we all remember the ultra-low rates homeowners got during the pandemic (see graph below):

Now, this doesn’t suddenly make a 6% mortgage feel exciting. But it does remind us that waiting for super low rates again may not be a realistic strategy.

What You Can Do Instead of Waiting for Lower Rates

None of this is meant to convince you that you have to buy today. You don’t. But if you need to because something in your life’s changed, there are still ways to find better affordability without sitting on the sidelines.

Check Out Newly Built Homes

Many builders are offering incentives to attract buyers. These include price cuts, potentially lower rates, free upgrades, and more. It’s worth exploring what’s available in your target county.

Ask About an Adjustable-Rate Mortgage

If you don’t plan to stay in the home long-term, an ARM may offer a lower initial interest rate than a traditional 30-year fixed mortgage. It’s not the right choice for everyone. But it’s worth asking a lender if it fits your plans.

Look Into Mortgage Rate Buydowns

This is when you pay upfront to reduce your mortgage rate. You can get a lower monthly payment without waiting for rates to fall. Your lender can walk you through the math to see if it makes sense.

Find Out About Assumable Mortgages

An assumable mortgage allows you to take over the seller’s existing loan, including its lower mortgage rate. Not all loans are assumable. But when they are, they can be a powerful tool for buyers facing higher rates today.

The important thing is you shouldn’t assume waiting is your only option.

Talk with your real estate agent and lender about whether one of these strategies could be a good fit for you.

Bottom Line

If you’ve been putting your home search on hold because you’re convinced mortgage rates will be much lower soon, it may be worth taking another look at that strategy. The forecasts just don’t support that expectation right now. And while waiting for lower rates might seem like a safe bet, you could end up delaying your plans far longer than necessary.

If you want to talk through what this means for your situation, schedule a quick call and we’ll walk through it together.

For the full picture in your county, see our county market reports for Camden, Burlington, Gloucester, Salem, and Cumberland counties.