Should You Wait for Interest Rates to Drop? Why Buying Now in Boston Could Be the Better Move

As mortgage rates continue to hover around 6.5–7% in 2025, many potential homebuyers in Boston are wondering if they should hold off on purchasing until rates come down. It’s a common and understandable question.

But the answer isn’t as straightforward as waiting for a lower number.

At Frame Residential, we work with buyers across Greater Boston every day who are trying to make smart, strategic decisions. What we’ve seen and what market data supports is this: waiting for rates to drop could end up costing more, not less.

Here’s why.

Home Prices in Boston Aren’t Dropping

In many parts of the country, home prices have flattened or dipped slightly. But Boston is a different story.

Due to limited inventory, steady demand, and a high concentration of homeowners locked into low-rate mortgages, prices in many neighborhoods like South Boston, Brookline, South End, Allston, Brighton, and Dorchester remain stable or are continuing to climb.

While higher rates have cooled bidding wars in some areas, we’re still seeing strong pricing in desirable neighborhoods like Charlestown, Beacon Hill, and the Seaport. If rates drop, we expect demand to return quickly, which could drive prices even higher.

When Rates Drop, Competition Increases

One of the advantages buyers have right now is leverage. With fewer active buyers in the market, sellers are more open to negotiations, price reductions, and closing concessions. This is particularly true in neighborhoods like Southie, Dorchester, and East Boston.

If you wait until rates fall, you may end up competing with a wave of buyers who have also been waiting on the sidelines. Increased competition means multiple-offer situations, over-asking bids, and less room to negotiate.

You Can Refinance in the Future

Buying at today’s rates doesn’t mean you’re locked in for 30 years. If mortgage rates decrease in the future, refinancing can help reduce your monthly payment but you won’t be able to rewind and buy the same home at today’s price.

Consider this: if you wait for a 1% drop in rates, but home prices rise by 5–10% in the meantime, your long-term savings may be erased. This is particularly true in competitive areas like Back Bay, the South End, and Brookline, where prices can shift quickly with buyer demand.

Waiting Can Cost More Than You Think

Let’s look at a simplified example. A buyer considering a home in Brighton for $800,000 today at a 7% interest rate might decide to wait a year in hopes that rates fall to 6%. But if that same home is worth $850,000 in twelve months, the monthly savings on interest may not offset the higher purchase price, especially when factoring in lost equity and the return of bidding wars.

In short, waiting for the “lower rate” can come at a real cost.

Real Estate Is Personal and Local

Boston is not a one-size-fits-all market. Every neighborhood moves differently, and every buyer’s financial goals are unique. Whether you’re looking in South Boston, Dorchester, Fenway, Charlestown, or Brighton, your decision should be based on what’s right for you, not just where rates are trending.

At Frame Residential, we help clients make thoughtful, informed decisions based on their goals, lifestyle, and timeline not market hype. We also work closely with trusted mortgage brokers who can help you secure the most competitive rate based on your financial profile.

The Bottom Line

If you’re financially prepared and planning to stay in your home for at least a few years, buying now could allow you to build equity sooner, avoid future competition, and take advantage of a less frenzied market.

And if rates fall? You’ll have the option to refinance but you won’t have missed the opportunity to own in the Boston neighborhood you really want.

Want to talk through your options? We’re here to help. Let’s build a strategy that works for you, whether you’re buying now or planning for what’s next.