The Best Time to Buy a Home Was Last Year. The Next Best Time May Be Today.

By Wyatt Poindexter, Managing Partner of The Agency Oklahoma

Interest rates have become one of the biggest reasons prospective buyers hesitate to purchase a home. Every week, people ask the same questions:

Should I wait for rates to fall?

Will homes become more affordable next year?

Am I making a mistake by purchasing now?

Those are reasonable questions. A home is one of the largest financial commitments most people will ever make, and no buyer should move forward without understanding the complete cost of ownership. However, concentrating exclusively on the interest rate can cause buyers to overlook an equally important consideration: the cost of waiting.

There is an old saying in real estate: “The best time to buy a home was last year.”

Why? Because while buyers wait for perfect conditions, property values, rents and the cost of living rarely remain frozen. The home someone decided not to purchase last year may cost more today—and another year of rent has been paid without creating ownership or equity.

Understanding Today’s Interest Rates

According to Freddie Mac, the average rate for a 30-year fixed mortgage was 6.95% as of September 17, 2026. The average 15-year fixed rate was 6.26%. These are national averages, not guaranteed rates; an individual buyer’s rate will depend on credit, down payment, loan program, debt-to-income ratio, property type and other factors. View Freddie Mac’s current mortgage-rate survey.

There is no question that borrowing is more expensive than it was during the historically low-rate period. Buyers should recognize that reality and calculate their payments carefully.

But historically low rates were accompanied by their own difficulties. Buyers frequently faced extremely limited inventory, bidding wars, waived contingencies and offers substantially above asking price. A low interest rate did not necessarily mean it was an easy or inexpensive time to buy.

Today’s market can provide opportunities that were difficult to find during the frenzy:

• More homes from which to choose
• Less competition from other buyers
• Greater negotiating power
• More time to conduct inspections and due diligence
• Possible seller-paid closing costs or interest-rate buydowns
• A better opportunity to negotiate repairs, inclusions and possession terms

The rate matters, but so do the price, the competition, the condition of the property and the overall terms of the transaction.

“A great real estate decision is not based on one number. It is based on the complete opportunity—the price, the property, the financing, the negotiation and how long you plan to own it.”
— Wyatt Poindexter

You Are Buying the Home, Not the Interest Rate

A mortgage rate is a financing term. The home is the asset.

If rates decline in the future, a qualified homeowner may have an opportunity to refinance, although refinancing is never guaranteed and involves qualification, costs and market conditions. What a buyer cannot do is go back and purchase yesterday’s home at yesterday’s price.

This does not mean everyone should buy immediately. It means buyers should avoid making a permanent housing decision based solely on a rate that may change over time.

The more important questions include:

Can you comfortably afford the payment?

Do you have adequate savings after closing?

Does the home fit your anticipated needs for several years?

Is the purchase price supported by the market?

Are the inspection and appraisal results acceptable?

Does ownership align with your financial and lifestyle goals?

When the answers are yes, waiting for a theoretical perfect rate may cost more than purchasing responsibly today.

How Homeownership Builds Equity

Equity is the difference between a home’s market value and the amount still owed on the mortgage.

For example, if a home is worth $500,000 and the remaining mortgage balance is $400,000, the homeowner has approximately $100,000 in gross equity before selling expenses or other liens.

Equity can grow in several ways.

1. Your Mortgage Balance Declines

With a traditional amortizing mortgage, part of each payment is applied toward principal. Early payments contain more interest than later payments, but the principal balance generally decreases over time.

That means a portion of the monthly housing expense is gradually increasing the homeowner’s ownership position.

2. The Property May Appreciate

Real estate values can rise over time because of inflation, housing demand, limited supply, neighborhood improvements and local economic growth.

Appreciation is not guaranteed, and home values can decline during certain periods. Nevertheless, long-term ownership has historically been one of the primary ways American households build wealth.

3. Improvements Can Add Value

Thoughtful renovations, proper maintenance and improvements to kitchens, bathrooms, outdoor living areas, energy efficiency and curb appeal may increase a property’s value.

Not every improvement returns its full cost, which is why owners should make renovation decisions carefully. The right improvements, however, can strengthen both marketability and long-term value.

4. Inflation Can Work in the Owner’s Favor

With a fixed-rate mortgage, the principal-and-interest portion of the payment remains consistent throughout the loan term. Taxes, insurance, maintenance and association dues may increase, but the underlying fixed mortgage payment does not rise simply because the cost of living increases.

Rent, on the other hand, can be adjusted at renewal. A renter may pay considerably more five or ten years from now while still having no ownership interest in the property.

Renting Provides Housing. Buying Can Create an Asset.

Renting is not automatically a poor decision. It can make sense for someone who expects to relocate soon, needs flexibility, is rebuilding credit or does not yet have the reserves required for ownership.

Renters also avoid many ownership expenses, including major repairs, property taxes and certain maintenance costs. Those advantages are real and should not be dismissed.

The fundamental difference is what remains after the payments have been made.

Rent provides the right to occupy a property for a defined period. Once the lease ends, the renter generally does not retain an ownership interest.

A mortgage payment may contribute toward an asset that the homeowner can potentially sell, refinance, improve or eventually own without a mortgage. The homeowner also gains greater control over the property, subject to applicable laws, loan requirements and community restrictions.

“When you rent, you are purchasing time in someone else’s asset. When you buy responsibly, you begin building an asset of your own.”
— Wyatt Poindexter

Consider the Cost of Waiting

Imagine a buyer pays $2,500 per month in rent. Over one year, that equals $30,000. Over three years, it equals $90,000, excluding rent increases and other fees.

Rent is not “wasted” in the sense that it provides housing. But it typically does not create equity for the tenant.

Meanwhile, if the price of the desired type of home increases, the buyer may face both a higher purchase price and years of rent paid while waiting. Even if rates later decline, greater buyer demand could return quickly, creating additional competition and placing upward pressure on prices.

There is also no guarantee that rates will fall on a buyer’s preferred schedule. Economic forecasts change, financial markets react quickly and mortgage rates can move in either direction.

Waiting is still a financial decision—and it has a cost.

The Payment Must Be Comfortable

The positive case for homeownership should never be used to pressure someone into purchasing a home they cannot comfortably afford.

A responsible buyer should account for:

• Principal and interest
• Property taxes
• Homeowner’s insurance
• Mortgage insurance, when applicable
• Homeowners-association dues
• Utilities
• Routine maintenance
• Major future repairs
• Emergency reserves
• Closing costs and moving expenses

The Federal Reserve recommends comparing loan offers, understanding rates and fees, reviewing different mortgage structures and evaluating how a payment may affect the household over time. Shopping among reputable lenders can make a meaningful difference in the total cost of borrowing.

The correct home is not simply one for which a buyer can receive approval. It is one the buyer can own without sacrificing financial stability.

Strategies Buyers Can Consider Today

A challenging rate environment does not eliminate opportunity. It makes strategy more important.

Qualified buyers may consider:

Comparing Multiple Lenders

Rates, fees and loan structures can vary. Buyers should compare the annual percentage rate, lender charges, points, closing costs and total cash required—not simply the advertised interest rate.

Negotiating a Seller-Paid Rate Buydown

Depending on the transaction and loan program, a seller may agree to contribute toward closing costs or an interest-rate buydown. This can sometimes reduce the buyer’s initial payment more effectively than an equivalent price reduction.

Evaluating Temporary and Permanent Buydowns

A temporary buydown can reduce the rate during the first years of ownership, while a permanent buydown uses discount points to lower the rate for the life of the loan. Each approach has different costs and benefits that should be reviewed with a qualified lender.

Purchasing Below the Maximum Approval Amount

The maximum loan approval is not necessarily the appropriate budget. Leaving room for maintenance, savings, travel and unexpected expenses can make ownership far more comfortable.

Focusing on the Right Property

The cheapest home is not always the best investment. Location, construction quality, condition, floor plan, lot, neighborhood demand and future resale potential all matter.

Negotiating the Complete Transaction

Price is only one component of an offer. Closing costs, repairs, personal property, warranties, timing and financing concessions can materially affect the buyer’s overall position.

Equity Is Usually Built Through Time, Not Timing

Many people believe successful real estate ownership requires purchasing at precisely the bottom of the market. In reality, very few buyers—or professionals—can identify the exact bottom until it has already passed.

Long-term wealth is more often created by purchasing responsibly, maintaining the property, paying down the mortgage and allowing time to work.

Trying to time the market perfectly can leave buyers permanently waiting.

Time in the market is often more valuable than attempting to time the market.

Oklahoma Buyers May Have More Leverage Than They Realize

Oklahoma continues to offer substantial value compared with many coastal and neighboring markets. Buyers can often obtain more land, square footage, privacy and amenities for their money than they could in many larger metropolitan areas.

Current inventory also means buyers may have choices and negotiating leverage that were unavailable during the most competitive years.

That does not make every listing a good purchase. Some homes remain overpriced. Others may require substantial repairs or may not support their asking prices through comparable sales.

This is why experienced representation matters. A strong Realtor should help a buyer evaluate the property, study recent sales, understand the neighborhood, structure a competitive offer and recognize when it is better to walk away.

The Bottom Line

Rates are important, but they are only one part of the decision.

A buyer who is financially prepared, plans to remain in the property and finds the right home at a supportable price may benefit from purchasing even when rates are not ideal. That buyer begins paying down principal, establishes an ownership position and participates in any future appreciation.

The buyer who waits may eventually receive a lower rate—but may also face higher prices, stronger competition and additional years of rent.

The best time to buy a home may have been last year. The next best time is when your finances, needs and the right opportunity come together.

Experience Matters in an Uncertain Market

Wyatt Poindexter has spent 31 years helping Oklahoma buyers and sellers navigate changing interest rates, shifting inventory and every type of real estate market. His career includes more than $1 billion in sales volume and over 1,000 homes sold.

Based on verified 2025 production, RealTrends recognized Wyatt as the No. 1 individual Realtor in Oklahoma by sales volume for its 2026 rankings, reporting $61.53 million in closed volume, 55 transactions and an average sales price of approximately $1.12 million. View the 2026 RealTrends Oklahoma rankings.

As Managing Partner of The Agency Oklahoma, Wyatt combines deep local experience with the reach, technology, marketing and collaborative network of a globally recognized luxury real estate brand. The Agency serves buyers and sellers across Oklahoma City, Edmond, Arcadia, Nichols Hills, Gaillardia, Tulsa, Grand Lake, Carlton Landing and communities throughout the state.

Whether you are purchasing your first home, moving into a luxury property, acquiring acreage or deciding whether ownership makes sense in today’s rate environment, the first step is an honest conversation about your goals.

Wyatt Poindexter
Managing Partner, The Agency Oklahoma
405-417-5466
www.OKLuxuryHomes.com