If you have been thinking about buying a home in Ahwatukee, Chandler, Gilbert, Phoenix, or another East Valley community, you may be waiting because you hope mortgage rates will come down.

I understand the thinking. Why buy now if waiting could potentially mean a lower payment later?

But there is another side to that decision that I believe every buyer should consider.

Mortgage rates are only one part of the cost of buying a home. The price you pay for the home matters too.

And while no one can predict exactly what home prices or mortgage rates will do in the future, waiting for one part of the equation to improve could mean missing opportunities that exist in today's East Valley market.

First-Time Buyers Are Competing for a Limited Part of the Market

This is particularly important for first-time homebuyers.

The most affordable homes are naturally the properties that the largest number of buyers may be able to consider. At the same time, there is a limited supply of homes available in those lower price ranges.

That supply-and-demand imbalance is one reason I would be cautious about assuming that waiting automatically makes buying more affordable.

Even when the overall housing market becomes more balanced, the entry-level portion of the market can behave differently from higher price ranges.

A buyer shopping for a first home may face a very different market from someone shopping for a luxury property.

Home Prices Matter Just as Much as Mortgage Rates

Let's imagine you decide to wait for mortgage rates to improve.

If rates eventually move lower but the price of the type of home you want has increased during that time, some of the benefit you were waiting for could be reduced—or potentially erased—by the higher purchase price.

There is another consideration too.

If lower mortgage rates eventually bring more buyers back into the market, increased competition could make it harder to negotiate on desirable homes.

That is why I don't believe buyers should try to make a homebuying decision by predicting one number.

We should look at the entire opportunity.

Today's Seller Concessions Can Create Opportunities

One of the advantages some East Valley buyers have today is negotiating power.

Homes that have been on the market longer, properties that have already experienced a price adjustment, or sellers who are motivated to move may create opportunities for negotiations that were much harder to find when buyers were competing heavily for almost every home.

One of those opportunities may be a seller concession.

A seller concession simply means the seller agrees to contribute toward certain allowable buyer costs as part of the transaction.

Depending on the buyer's financing and applicable loan guidelines, a lender may be able to use an allowable seller contribution toward eligible closing costs or a mortgage rate buydown.

For some buyers, negotiating help with those costs can make purchasing today more attractive than simply waiting and hoping market conditions improve later.

Not every seller will agree to concessions, and the amount and permitted use depend on the transaction and financing. That is why your REALTOR® and lender need to work together when developing the offer strategy.

Today's Negotiating Opportunity May Not Be Here Later

This is something buyers sometimes overlook.

If mortgage rates decline significantly at some point in the future, you probably won't be the only person who notices.

Buyers who have been waiting may return to the market too.

More buyers competing for the same affordable homes could mean fewer seller concessions, less negotiating room, and more competition for well-priced properties.

There is no guarantee that will happen, but it is another reason I believe buyers should evaluate today's complete market instead of waiting for one specific condition to change.

What if Mortgage Rates Do Improve After You Buy?

This is where having a long-term strategy becomes important.

If you purchase a home today and mortgage rates become more favorable in the future, you may be able to explore a rate-and-term refinance.

A rate-and-term refinance generally replaces an existing mortgage with a new mortgage designed to change the interest rate, loan term, or both, rather than taking substantial cash out of the property.

But I want to be very clear about this:   You must still qualify for that new loan.

You would still need to qualify at that time. Your credit, income, debts, property value, equity, employment, loan guidelines, and other financial circumstances can all affect whether refinancing is available and whether it makes financial sense.

That's why maintaining good financial habits after purchasing your home remains important.

Your lender can help you understand what factors could affect your ability to refinance in the future.

Buy the Home Based on Today's Numbers

I would never recommend buying a home today solely because you expect to refinance it later.

The home and payment should make sense based on your circumstances when you purchase it.

Think of a future refinance as a potential opportunity—not a promise.

If the home fits your needs, you can comfortably afford the payment, and we can negotiate terms that make sense today, then purchasing now may be worth considering.

If mortgage conditions improve later and you remain financially qualified, you can talk with your lender about whether refinancing would provide a meaningful benefit.

There May Be More Than One Way To Improve Affordability

When I work with a buyer, I don't want the conversation to stop at, "What are mortgage rates today?"

I want to look at the home itself and the opportunities surrounding it.

Has it been sitting on the market?

Has the seller reduced the price?

Are there competing offers?

Could we negotiate seller concessions?

Are there comparable homes that offer better value?

Is new construction worth considering because a builder is offering incentives?

Those questions can sometimes uncover opportunities that aren't obvious when you're simply watching mortgage-rate headlines.

Waiting Has a Cost Too

There are certainly situations where waiting to purchase is the right decision.

If your finances aren't ready, your employment is uncertain, you need additional savings, or the payment isn't comfortable, waiting may be the responsible choice.

But if you are financially prepared and the only thing keeping you from buying is the hope that mortgage rates will eventually be lower, I believe it's worth looking at the bigger picture.

The affordable segment of our housing market remains important to first-time buyers, and the supply of those homes isn't unlimited.

Meanwhile, today's market may provide opportunities to negotiate with sellers that could become harder to find if buyer demand increases again.

You don't have to predict the perfect time to buy. You need to determine whether the home, the price, the financing, and the opportunity make sense for you today.

If you're considering buying your first home or making a move in Ahwatukee, Chandler, Gilbert, Phoenix, or another East Valley community, I'd be happy to help you explore the homes available and develop a strategy based on your goals.

Contact me here and let's start the conversation.

Kip Wilkins is a licensed REALTOR® with Equities Real Estate, LLC. REALTOR® is a registered trademark of the National Association of REALTORS®. Equal Housing Opportunity. Mortgage financing, seller concessions, buydowns, refinancing, loan programs, qualification requirements, and lending guidelines are subject to change and vary by borrower and property. A future refinance is not guaranteed. Kip Wilkins and Equities Real Estate, LLC are not mortgage lenders. Buyers should consult with a qualified mortgage professional regarding financing and refinancing options. Real estate information is deemed reliable but not guaranteed and should be independently verified.