After years of rising interest rates, the Federal Reserve’s recent half-point cut had been much anticipated. The Fed also signaled more cuts to come.

Judging by the inquiries we have received in the days since, most by those considering a major purchase like buying or refinancing a home, the news was welcome. If you, too, are considering a similar purchase, you’ve probably already asked yourself: “Is now the time or should I wait for rates to drop further?”

Without a crystal ball, that’s a difficult question to answer. The reality is that rates have been trending slightly downward since the 30-year fixed-rate mortgage peaked around 7.75% late last year. This trend has continued in recent weeks as lenders built in an anticipated Fed rate cut.

Waiting for a better rate comes with the potential for both risk and reward. So, let’s talk about what you should consider.

Let’s start with the obvious: A lower rate will save you money over the life of a mortgage or auto loan. Even a modest reduction can save thousands, so it makes some sense to wait until you can get the best rate.

Rates are important, but timing the market can be a gamble, too. Recently, The Bulletin reported that the value of single-family homes in Bend dipped year-over-year. But it would be a leap of faith to assume prices will continue to drop, especially if lower interest rates start pulling people off the fence and back into the market.

Some of the factors that led to a post-pandemic run-up in home prices in Central Oregon, namely a limited supply of homes, remain. And a jump in demand could put upward pressure on home prices. By waiting for the “perfect” rate you could find yourself with fewer options—and higher prices.

Rates constantly fluctuate for many reasons—economic trends, global events, and inflation, to name a few. Admittedly, today’s rates are not the lowest we’ve ever seen, even if they remain historically on the low end. They could move lower, but there’s no guarantee how much they’ll fall or how quickly.

It’s also important to remember that rates are just one piece of the puzzle. Your financial readiness—credit score, savings, and long-term goals—are just as important. If you’re in a stable position and rates are within a reasonable range, it might make sense to move forward rather than wait.

If home values rise, no one can go back in time to pay today’s prices. But if rates drop further, you can always refinance, mitigating some of the risks of buying now. If you secure a mortgage today and rates drop in the future, you have the option to refinance your loan at a better rate.

While there are some costs involved with refinancing, they are usually small compared to the savings achieved in the long term. This strategy lets you secure the asset now—whether a home or something else—rather than waiting and risking higher prices or shrinking supply later.

While it can be tempting to wait for lower rates, the risks can outweigh the benefits. You could miss out on opportunities in the market or face higher prices while waiting for a rate drop that may not come.

If you’re financially ready to make a major purchase, which is the most important calculus for anyone considering a significant investment like a home, acting now could make the most financial sense. Maybe just as valuable? The peace of mind that comes from knowing that the decision-—and the competition—is over.

Erin Torrance is the Central and Eastern Oregon Mortgage Loan Officer for SELCO Community Credit Union.