Should You Buy Now or Wait for Lower Rates?

Imagine finding your dream home in Arizona, but you hesitate because interest rates are higher than expected. Do you wait, hoping for a better deal, or take action now?

Let’s answer that by looking at what buyers are doing in 2026, from taking advantage of new home incentives to smart ways to handle closing costs.

Why buyers choose new construction homes. Recently, many buyers have been exploring new construction communities. Agents report selling six or seven new-build homes in just a few months. These communities often provide strong incentives to attract buyers, especially those who want lower interest rates without paying a large sum upfront.

One popular incentive is the 3-2-1 buy down, which reduces interest rates for the first few years:

• 3.99% in the first year
• 4.99% in the second year
• 5.99% for the remainder of the loan

Other perks may include assistance with closing costs or lot premiums. These incentives can make purchasing a new home more affordable while giving buyers a better chance to manage their monthly payments.

Should you wait for lower interest rates? Deciding whether to buy now or wait depends on your personal financial situation. Ask yourself:

• Can I comfortably make a monthly mortgage payment on the home I want?
• Does buying now fit my budget and lifestyle?

If the answer is yes, it could be a good time to buy. Waiting for rates to drop to historic lows, like 3%, is not ideal. Those rates were achieved through quantitative easing and massive government stimulus after the 2008 financial crisis and during COVID-19. Such conditions are rare and unlikely to repeat.

Even with a new Federal Reserve chair in April 2026 who favors lower rates, relying on future refinancing as a strategy is risky. The safest approach is to focus on what you can afford today, rather than hoping rates drop later.

Resale homes can also be a smart choice. Buying a resale home can also be financially manageable. In many cases, sellers are willing to provide concessions, which may cover:

• Closing costs
• Buyer representation fees
• Loan origination fees

This means buyers often only need to bring their down payment. However, competitive homes may attract multiple offers, so timing and strategy are important.

Focus on long-term financial benefits. Purchasing a home in 2026 isn’t just about the current interest rate. If you make a smart financial decision now, you can build significant equity over time. In markets like Phoenix, continued business growth and capital investments are expected to support steady property appreciation.

The key is to buy a home that fits your budget, lifestyle, and long-term goals. By doing so, you’ll position yourself for growth and stability in the years ahead.

If you’re considering buying a home this year, reach out anytime at (480) 327-8092, email info@langanteam.com, or visit kevinsellsaz.com. I’ll help you explore your options, understand the numbers, and find a home that fits your budget and lifestyle.