As we move closer to 2026, many Palm Beach County buyers are asking the same question:

“Should I wait for interest rates to drop—or buy now while rates are in the low 6s?”

It’s understandable. A lower rate feels like the key to getting a better monthly payment.

But here’s the part most buyers aren’t aware of:

A small change in rates + even a small change in prices can dramatically change your affordability.
Sometimes waiting ends up costing more—even if the rate drops.

In this blog, I’ll break down the true cost of waiting, show you real payment differences at current rates, and explain how buyer demand in Palm Beach County shifts when rates move—even a little.

Where Rates Are Today (6.2%–6.3%)

Right now, the average buyer is seeing:

• 6.20% – 6.30% for a 30-year fixed

• Higher credit score = closer to 6.2%

• FHA/VA often slightly lower

This is the lowest range we've seen in months, and many buyers are returning to the market because of it.

But the key question remains…

Does it make sense to wait for rates to fall further?

Let’s look at the real math.

How Rates Affect Your Buying Power (Simple Table)

Below is a comparison of the monthly principal & interest payment on a $600,000 home at different rates:

Table 1: How Your Payment Changes as Rates Move

Key takeaway:
A jump from 6.2% to 7.0% reduces your buying power by roughly $50,000–$60,000 without your income changing at all.

This is why waiting can be risky.

What Happens If Rates DROP? (And Prices Rise Because of It)

Buyers often focus on rates—but overlook how prices react.

Historically, when rates drop:

• More buyers jump back into the market

• Inventory tightens

• Sellers become less flexible

• Prices climb—especially in South Florida

Let’s look at the difference between:

1. Buying now at 6.2% vs.
2. Buying later at 5.5% but with a 5% increase in home prices

Table 2: Rate Drops + Price Increases

Here’s the surprising part:

A drop in rates does not automatically mean a lower payment.

Even a modest increase in prices can eliminate the “savings” of a lower rate—and sometimes make the payment higher.

This is the true “cost of waiting” buyers don’t see until it’s too late.

Why Palm Beach County Is So Sensitive to Rate Changes

Palm Beach County behaves differently than most markets. When rates dip, the effect is magnified because of:

1. High relocation demand

Buyers from all over the country—not just the Northeast—are still moving here for:

• Taxes

• Lifestyle

• Weather

• Job opportunities

• New construction

These buyers often move fast when rates drop.

2. Limited inventory in desirable neighborhoods

Communities like:

• Jupiter

• Palm Beach Gardens

• Westlake

• Avenir

• Wellington

• Arden

• Boca Raton

rarely see large increases in supply.

Demand can spike faster than inventory can respond.

3. Builder pricing

When rates drop:

• Incentives reduce

• Prices increase

• Inventory homes sell quickly

Builders adjust pricing to match demand—not to favor waiting buyers.

4. Investors re-enter the market

Lower rates attract:

• Short-term rental investors

• Long-term rental investors

• Cash-flow buyers

• Second-home purchasers

This adds competition at all price points.

What Buyers Should Consider Going Into 2026

You may benefit from buying sooner if:

• You found a home you love

• You can afford the payment at 6.2%–6.3%

• You plan to refinance later

• You want to avoid competition

• You’re moving into a high-demand community

You may benefit from waiting if:

• You need more time for savings or credit

• Your timeline is flexible

• Your target neighborhood has ample supply (rare)

The key is understanding your numbers and your goals, not chasing headlines.

Smart Strategies to Protect Your Buying Power

Here are ways buyers can get ahead of the curve:

1. Lock your rate early

Many lenders offer lock-and-shop options.

2. Use permanent or temporary rate buydowns

A 2–1 buydown can save hundreds per month the first year.

3. Take advantage of lender refinance programs

Some offer low-cost or no-cost refinances within 12–24 months.

4. Consider new construction incentives

Builders may still offer:

• Rate buydowns

• Closing cost assistance

• Upgrades

5. Have a local agent monitor micro-market trends

Palm Beach County is not one market—it’s dozens of micro-markets.

My job is to help you understand each one.

Final Thoughts: The Market Rewards Preparation, Not Perfection

The goal isn’t to “time the market perfectly.”
It’s to:

• Understand your buying power

• Know how rates impact your payment

• Evaluate whether waiting actually benefits you

• Protect your long-term affordability

In many cases, buying at today’s 6.2%–6.3% and refinancing later is more cost-effective than waiting for rates to fall while prices climb.

If you're curious about your buying power or planning for a 2026 move, I’m here to help guide you through your options—pressure-free and at your pace.