Mortgage rates have already started to come down from recent highs, largely due to the prospect of a Federal Reserve-induced economic slowdown. The average rate for a 30-year, fixed-rate mortgage dropped to 6.35% on August 29 from 6.46% a week ago, the lowest mortgage rates have been in 15 months, according to Freddie Mac.

“Would-be homebuyers are likely going to get a much more attractive rate today than they would have just a few short months ago,” said Jacob Channel, senior economic analyst at LendingTree.

Still, many home shoppers are anchored to the fact that mortgage rates hit rock bottom only a few years earlier after the Fed slashed its benchmark interest rate to near zero, according to Dottie Herman, vice chair at Douglas Elliman.

“I’ve been in the business 30 years and I’ve never seen 2.5% to 3% in my lifetime, other than during the pandemic — I never saw those rates unless it was a government loan.”

Such “relativity bias” can stand in the way of opportunity, she added. “I bought a house when [the mortgage rate] was 15% and then I refinanced.”

“If you can afford a home, based on interest rates and the purchase price, buy now,” said Michael Krowe, director of financial planning at Edelman Financial Engines.

Even though recent declines in mortgage rates may gain steam as the Fed lowers its benchmark rate, lower mortgage rates could also boost homebuying demand, which would push prices higher.

“It might not make sense to delay the purchase if you can afford it today,” Krowe said.

 What exactly will happen in the housing market “is up in the air” depending on how much mortgage rates decline in the latter half of the year and the level of supply, according to LendingTree’s Channel.

“Timing the market is virtually impossible,” he said. 

House hunters who are ready to purchase a home may benefit from refinancing later, but there are no guarantees. Holding out for a better rate also comes with the possibility of having to pay a higher purchase price.

Ultimately, “there’s no perfect time to buy,” according to Douglas Elliman’s Herman.

“If you want to buy a home, and you find something you like, get it,” she said.