One of the biggest questions I hear from Colorado buyers in 2025 is simple: Should I buy now or wait for mortgage rates to drop? It’s a fair concern. With the average 30-year fixed loan sitting at 6.7%, many are hoping for relief. But here’s the truth I share with my clients: waiting for lower rates doesn’t always save you money—especially in a market like Colorado where home prices continue to rise.
Comparing Two Scenarios in Denver
Let’s look at the numbers for a home priced at $600,000 in Denver today.
Scenario A: Buying Now
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Purchase Price: $600,000
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10% Down: $60,000
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Loan Amount: $540,000
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Interest Rate: 6.7%
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Monthly Principal & Interest: about $3,490
Scenario B: Waiting One Year
Let’s assume rates fall to 6.0%, but prices rise by the historical average of 4%.
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Purchase Price: $624,000
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10% Down: $62,400
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Loan Amount: $561,600
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Interest Rate: 6.0%
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Monthly Principal & Interest: about $3,365
At first glance, waiting saves about $125 per month. But you’re also paying $24,000 more for the home itself, plus a higher down payment. In the long run, buying sooner secures equity growth earlier.
Why Refinancing Matters
When I work with buyers, I often recommend the “marry the house, date the rate” mindset. If rates drop in a year or two, refinancing can lower monthly payments—but by then, you’ll already have built equity in your Colorado home.
The Bigger Picture: Colorado Market Fundamentals
Colorado’s housing market has proven resilient:
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Home values in Denver rose 70% between 2012 and 2019.
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They jumped another 35% from 2020 to 2023.
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Population is projected to grow 1.2% annually through 2030, keeping demand strong.
These numbers show why waiting for a big drop in prices is unlikely to pay off.
Lifestyle Factors I Encourage Clients to Weigh
Numbers aside, lifestyle matters:
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Buying sooner locks in stability compared to Denver’s rising rents (averaging $2,200/month for a two-bedroom in 2025).
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Today’s inventory gives buyers more choice than during the frenzy years.
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If you’re ready for more space, a new neighborhood, or a long-term investment, waiting may only delay your goals.
Final Thoughts
There’s no one-size-fits-all answer, but in most cases, buying sooner builds equity and creates stability—while waiting carries risks of higher prices and fewer options. If you’re wondering what makes sense for your situation, let’s talk it through. Visit www.rachelsartinre.com or reach me directly at [email protected] or 720-434-4319.
