In the Prescott Quad Cities real estate market, many potential buyers are holding off, hoping for interest rates to drop in the coming months. However, with 28 years of experience, The Remakel Group has seen that waiting for a better rate often doesn’t save as much as you might think—and it can actually cost you more in the long run. Let’s break down the numbers and explore why acting now could be the smarter move.
The Interest Rate Dilemma: A Closer Look
As of May 22, 2025, the 30-year fixed mortgage rate is 6.86%, a slight increase from 6.81% the previous week, according to Freddie Mac. Analysts at Fannie Mae predict rates might dip to around 6.5% by the end of 2025 if the Federal Reserve cuts rates further. But even official forecasts are uncertain, with inflation still a concern—meaning those cuts aren’t guaranteed.
Consider a $400,000 home in the Prescott Quad Cities with a 20% down payment ($80,000). At 6.86%, your monthly payment (excluding taxes and insurance) on a $320,000 loan would be $2,100. If rates drop to 6.5% in six months, that payment falls to $2,041—a savings of just $59 per month, or $708 annually. Over 30 years, that’s $21,240. Sounds good, right? Not so fast.
The Hidden Costs of Waiting
While that $59 monthly savings might seem appealing, waiting comes with risks that could outweigh the benefits:
- Rising Home Prices: The Prescott Quad Cities market is on an upward trend. In June 2024, median home prices hit $532,500, up 4.2% year-over-year, per the Prescott Area Association of REALTORS® (PAAR). If prices rise another 4% in six months, that $400,000 home becomes $416,000. At 6.5%, your new loan amount after the down payment is $332,800, making your monthly payment $2,120—$20 more than buying now at the higher rate. Plus, you’ve lost six months of equity growth.
- Rental Costs Add Up: If you’re renting while waiting, those costs pile up. The average rent in the Prescott area is around $1,500 per month, according to recent Zillow data. Six months of rent totals $9,000—far more than the $708 you’d save annually from a lower rate.
- Market Competition: With inventory up 43.6% in June 2024 (PAAR), buyers currently have leverage—78% of homes sold below asking price in January 2025. If rates drop, more buyers may jump in, increasing competition and driving prices higher, as noted in a recent Forbes article. You might miss out on negotiating power or even the home you love.
The Bigger Picture: Opportunity Costs
Beyond dollars and cents, waiting has other costs. You’re delaying the lifestyle benefits of homeownership in the Prescott Quad Cities—think enjoying summer at the Colorado River or hiking trails like Thumb Butte. Plus, every month you wait is a month you’re not building equity, which can compound over time as home values appreciate.
Take the Next Step with The Remakel Group
Waiting for interest rates to drop in the Prescott Quad Cities might seem like a smart move, but as we’ve shown, the savings are often minimal—while the costs of delaying can add up quickly through rising home prices, rent expenses, and missed opportunities. With The Remakel Group’s 28 years of expertise and proven results, you don’t have to gamble on the market. Let us help you make a confident, win-win decision today. Visit our contact page to schedule a personalized consultation and start your journey toward homeownership in the Prescott Quad Cities—don’t wait for rates to decide your future!
