Buying a Home Today... What You Need to Know About Rates, Prices, and Timing

If you've been thinking about buying a home but are waiting for mortgage rates to drop back to the historic lows we saw during COVID...it's time to reset expectations.

According to the National Association of REALTORS�, the median age of first-time homebuyers has risen to an all-time high of 40, the highest since NAR began tracking in 1981. Historically, first-time buyers were between 28 and 33, and they made up about 40% of all home purchases. Today, that share has dropped to just 21%.

So, what's holding buyers back?

A big factor is the belief that mortgage rates are "too high" right now. But the reality is this: those sub-3% rates were an anomaly, artificially pushed down by emergency government action after the 2008 financial crisis and during COVID. Most experts agree; we're unlikely to see those rates again anytime soon.

The Mortgage Bankers Association, Fannie Mae, and the National Association of REALTORS� do not expect much difference in current rate to the end of the year and that 2027 will not be much different in the low to mid 6% range.

To put that in perspective, the 54-year average for mortgage rates is 7.70%, according to Freddie Mac. As of June 18, 2026, the rate was 6.47% which means today's rates are almost 16% below the long-term average.

Meanwhile, home prices continue to rise in most U.S. metro areas, and with inventory still relatively tight, competition remains high.

Waiting could cost more than it saves.  Accepting that the current rates may be the "new normal" can allow you to move forward and start building equity in homes that are expected to continue to go up in value.

Re-evaluating your buying timeline now could give you the stability and equity growth that comes with homeownership and get you on the path to long-term financial security faster.

Thinking about buying or just want to understand your options? I can connect you with trusted lenders who can help you assess today's affordability and find a solution that works for you.  For more information, download our Homeownership Today guide.

A Key to Reading the Market

When it comes to real estate, one of the most useful tools for understanding market conditions is something called the absorption rate. Simply put, the absorption rate measures how quickly homes are selling in a specific market. It's calculated by dividing the number of homes sold in a given period by the number of homes currently on the market. This figure gives us a "speedometer" for the market; how fast or slow homes are moving.

In a balanced market, the absorption rate usually reflects about five to six months of inventory. That means if no new homes were listed, it would take five to six months to sell all the homes currently available at the existing sales pace. When the absorption rate dips below five months, we enter seller's market conditions. This signals high demand and low inventory, which often leads to faster sales, competitive bidding, and multiple offers. On the other hand, when the absorption rate climbs above six months, it indicates a buyer's market. Homes take longer to sell, inventory grows, and buyers often gain leverage in negotiations.

The absorption rate also plays a big role in setting strategy. In a high-absorption market where demand is strong, pricing a home aggressively and preparing for a fast sale can make sense. In a low-absorption market, pricing more competitively and offering buyer incentives may be the best way to attract attention. Sellers benefit from knowing these dynamics upfront, because it helps them set realistic expectations about how long their home might take to sell and whether adjustments to price or presentation may be necessary.

It's also important to remember that real estate is local. While you may hear national statistics on the housing market, the absorption rate is most useful when applied to your local area, even down to specific neighborhoods or price ranges. That's because each market has its own rhythm, and broad averages rarely capture the nuances of your community.

Think of absorption rate as a snapshot of market velocity. Just like traffic speed tells you whether the road is clear or congested, absorption rate tells buyers and sellers whether the market is moving quickly or slowly. Armed with this knowledge, you can make more informed decisions whether you're preparing to buy, sell, or simply stay up to date with your neighborhood's market activity.

The Hidden Advantage of a VA-Savvy Agent

Buying a home with a VA loan is one of the most valuable benefits available to those who've served our country. But like any powerful program, it works best when you have someone guiding you who understands its unique rules and opportunities. A real estate agent experienced with VA loans can make the difference between a smooth, stress-free purchase and one filled with frustration or missed benefits.

It all starts with getting accurate guidance at the beginning. Before house-hunting even begins, an experienced agent helps you connect with a VA-approved lender to confirm your eligibility and ensure you qualify for the loan. This prevents wasted time, false starts, or disappointment later in the process. From there, understanding how your VA entitlement and loan limits work allows you to maximize your purchasing power, often without having to make a down payment at all.

Another key area is the VA appraisal process, which is different from a conventional loan. The VA places special emphasis on property condition and safety. A knowledgeable agent will prepare you and the seller for what to expect so the transaction stays on track without delays or surprises. They'll also know how to identify homes that meet VA standards before you even make an offer, avoiding wasted effort on properties that may not qualify.

Because most VA buyers can take advantage of zero-down financing, it's important to work with someone who knows how to structure the purchase to make the most of that benefit. A skilled agent also understands exemptions to the VA funding fee such as for veterans with service-connected disabilities, ensuring that buyers don't pay more than they need to.

Experience also matters when it comes to timing. VA loans can take slightly longer to process than other types of financing, but a seasoned agent knows how to anticipate and manage those timelines, keeping everyone informed and the closing on schedule. They'll also have strong relationships with VA-savvy lenders who are familiar with the documentation and guidelines, which helps prevent bottlenecks.

Beyond the technical side, an experienced agent is an advocate. Because VA loans are sometimes misunderstood by sellers, your agent can structure your offer in a way that appeals to them while still protecting your benefits and negotiating in your best interest. And even after closing, they'll be there to answer questions about refinancing through the Interest Rate Reduction Refinance Loan (IRRRL), property tax exemptions, or VA occupancy rules.

For veterans, active-duty service members, and surviving spouses, the VA home loan benefit is one of the most powerful tools for building long-term wealth and stability. Having the right agent by your side ensures you make the most of every advantage you've earned, confidently, efficiently, and with someone who truly understands how to serve those who have served.