Could mortgage rates ease? Why experts say now may still be good time to buy a home

If you've been waiting for mortgage rates to drop, there may be a potential shift ahead.

Experts say global events, including the possibility of a peace deal involving Iran, could help ease inflation, a key driver behind high borrowing costs. That, in turn, may provide some relief for mortgage rates.

Rising fuel costs linked to global conflict have pushed inflation higher, and that pressure has helped to keep mortgage rates elevated. If inflation starts to ease, that could help bring rates down.

According to FreddieMac data, the average 30-year fixed rate dipped below 6% in late February, then climbed right back to almost 6.5% by early April. The rate then fell slightly before returning to its current level of 6.5%, as of June 16, 2026.

Why many buyers still feel stuck

Even with the possibility of relief, many prospective buyers say they feel locked out of the housing market.

Home prices remain high, inventory is limited and borrowing costs are still significantly higher than just a few years ago.

That combination has made affordability a major challenge, especially for first-time buyers.

Why experts say don't give up

Despite the challenges, financial expert Mical Jeanlys-White says buyers shouldn't abandon their plans.

Jeanlys-White, founder and CEO of the financial planning app Wealthmore and host of the All The Wealth podcast, says homeownership remains one of the most effective ways to build long-term wealth.

Her advice: rethink expectations.

"So maybe your first home is not the three-bedroom, two-bath starter," Jeanlys-White said in a recent appearance on the In Your Corner podcast.

Instead, she suggests buyers consider smaller properties, fixer-uppers, or alternative options to get into the market.

"You may have to buy the ugliest home on the block," she said, "but you're building wealth in the meantime."

A mindset shift for first-time buyers

Jeanlys-White says today's market requires flexibility.

That could mean:

• Buying a condo instead of a single-family home
• Taking on renovations
• Starting smaller than originally planned

The key idea: getting into the market matters more than finding the "perfect" home right away.

"You can have it all, just not right now," Jeanlys-White said.

The bottom line

Experts say success in today's housing market comes down to strategy and adjusting expectations.

For buyers willing to be flexible, the long-term financial benefits of homeownership may still outweigh the challenges.

You can hear the full discussion on the latest episode of the In Your Corner podcast. Each week features a different guest expert. You can find new episodes posted every Wednesday on the CBS Philadelphia YouTube channel.

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