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THE COST OF

WAITING

NU M B E R S A CLOSER LOOK AT THE

Timing the housing market can be difficult. While waiting may feel like the safer choice, changes in home prices and interest rates can affect what you can afford and what your monthly payment may look like.

LET’S LOOK AT THE NUMBERS See how different market scenarios could impact the cost of buying a home and help you make a more informed decision.

A mortgage rate is only one part of the homebuying equation. Focusing on rates alone can overlook another important factor: what may happen to the housing market while you wait.

To put that into perspective, consider this. In 1972 the interest rate for a mortgage was 7.38%. If you had waited for interest rates to go down, you would have waited to purchase a home until 1993. YOU WOULD HAVE RENTED FOR OVER 20 YEARS WAITING FOR RATES TO GO DOWN WHILE THE VALUE OF REAL ESTATE WENT UP. 30-Year Fixed Mortgage Rates: 1972-2025

20+ Years!

HOW DID WE GET HERE? Mortgage rates are only one piece of the housing market. The number of homes available for buyers matters, too. For years, the U.S. has faced a housing supply challenge. New construction has not always kept pace with demand, while many existing homeowners have been reluctant to sell. Together, these factors have contributed to fewer homes being available for buyers. Inventory conditions are beginning to improve in many areas, but housing supply remains an important part of the affordability equation. That means waiting for a lower mortgage rate does not guarantee that the overall cost of buying a home will improve. The takeaway: When deciding whether to buy now or wait, consider the whole picture, not just the interest rate.

SOURCE: NAR, FREDDIE MAC, WAYPOINT

MORE BUYERS. LIMITED SUPPLY. Over time, the U.S. population has continued to grow while the supply of homes available for sale has struggled to keep pace. At the same time, millions of Millennials and Gen Z consumers are moving through the ages when many people begin forming households and considering homeownership.

What does that mean for today’s buyer? Waiting for rates to change does not necessarily mean there will be less competition or lower home prices later. As more potential buyers enter the market, demand for available homes can remain strong. The cost of waiting is about more than the interest rate. It is about what could happen to home prices, inventory, and your buying power while you wait.

BETTING AGAINST HISTORY? No one can predict exactly what home prices will do next. But history provides valuable perspective. Over time, home values have increased far more often than they have declined, even though periods of slower growth and price declines have occurred.

WHY DOES THAT MATTER WHEN CONSIDERING WHETHER TO BUY NOW OR WAIT? When home values appreciate, homeowners have the opportunity to build equity simply by owning the home while paying down their mortgage. Waiting, on the other hand, could mean purchasing the same home later at a higher price and missing the opportunity to build equity along the way.

A RECESSION DOESN’T AUTOMATICALLY MEAN LOWER HOME PRICES When there is talk of a possible recession, it can be tempting to put your homebuying plans on hold and wait for prices to fall. But history shows that an economic recession and a housing downturn are not the same thing. As the chart illustrates, home values have continued to rise through many past recessions. Housing prices are influenced by many factors, including supply, demand, household formation and the number of homes available for sale. Waiting for a recession does not guarantee a lower home price. If prices continue to appreciate while you wait, you could end up paying more for the same home while also missing the opportunity to begin building equity.

WHAT COULD WAITING TO BUY COST YOU? It can be tempting to put a home purchase on hold while waiting for lower rates, lower prices, or the “perfect” time to buy. But the housing market doesn’t always move the way we expect.

While mortgage rates remain higher than many buyers would like, home prices have continued to rise in many markets. That means waiting for a lower interest rate doesn’t necessarily mean paying less for a home.

A higher future purchase price could mean a larger loan amount, more cash needed at closing, and potentially a higher monthly payment.

And there is another piece of the equation: equity. Buying sooner gives homeowners the opportunity to begin building equity sooner, while waiting may mean purchasing the same type of home later at a higher price.

THE QUESTION ISN’T SIMPLY,

“SHOULD I WAIT FOR RATES TO COME DOWN?” IT’S,

“WHAT COULD WAITING ACTUALLY COST ME?” The following pages put real numbers behind that question, showing how waiting 6 months or 1 year could affect the purchase price, cash needed, monthly payment, and overall cost of buying a home.

COST OF WAITING

$300,000 HOME 5% DOWN PAYMENT

WHAT COULD WAITING 1 YEAR COST?

See how waiting could change the price, payment and cash needed to buy. ESTIMATED 1-YEAR COST OF WAITING

$15,332

Buying today vs. waiting 1 year

HOME PRICE

CASH NEEDED

MONTHLY PAYMENT

+$18,600

+$1,918

+$61

$300,000 -> $318,600

$22,000 -> $23,918

$2,375 -> $2,436

THE COST BUILDS AS THE PRICE OF THE HOME RISES

Even with a lower projected rate, the buyer is financing a more expensive home. BUY TODAY

WAIT 6 MONTHS

WAIT 1 YEAR

$300,000

$309,160

$318,600

6.625% RATE

6.375% RATE

6.250% RATE

$2,375/MO

$2,393/MO

$2,436/MO

WHAT THIS MEANS This example compares buying today with waiting 6 months or 1 year. It shows how

changes in the projected home price and interest rate could affect the cash needed and monthly payment, helping you see the potential financial impact of waiting.

Source: MBS Highway. For illustrative purposes only. Projections and assumptions are subject to change and are not a guarantee of future home values, interest rates, payments, or market conditions. Actual results may vary.

COST OF WAITING

$300,000 HOME 5% DOWN PAYMENT

WHERE DOES THE $15,332 COME FROM?

The estimated cost of waiting considers projected home price appreciation, changes in monthly payment and the estimated cost to refinance.

$18,600 PROJECTED APPRECIATION

+$732

PAYMENT DIFFERENCE

-$4,000 ESTIMATED REFI COST

=$15,332 COST OF WAITING

1-YEAR COST OF WAITING BREAKDOWN $18,600

$15,332

$15K$10K$5K-

$732

$0 $-5K

-$4,000 PROJECTED APPRECIATION

PAYMENT DIFFERENCE

BUY TODAY VS. WAIT 1 YEAR

ESTIMATED REFI COST

BUY TODAY

WAIT 1 YEAR

DOWN PAYMENT

$15,000

$16,918

INTEREST RATE

6.625%

HOME PRICE

$300,000

LOAN AMOUNT

$285,000

TOTAL MONTHLY EXPENSES

$2,375

COST OF WAITING

$318,600 $301,682 6.25%

$2,436

THE BIG PICTURE

Waiting for a lower rate doesn’t always mean a lower overall cost. In this example, the projected interest rate decreases, but the home price increases. That means waiting could require more cash, a larger loan amount and a higher monthly payment. Buying sooner may also give you the opportunity to start building equity sooner.

COST OF WAITING

$400,000 HOME 5% DOWN PAYMENT

WHAT COULD WAITING 1 YEAR COST?

See how waiting could change the price, payment and cash needed to buy. ESTIMATED 1-YEAR COST OF WAITING

$15,631

Buying today vs. waiting 1 year

HOME PRICE

CASH NEEDED

MONTHLY PAYMENT

+$19,127

+$1,958

+$42

$400,000 -> $419,127

$27,000 -> $28,958

$3,166 -> $3,208

THE COST BUILDS AS THE PRICE OF THE HOME RISES

Even with a lower projected rate, the buyer is financing a more expensive home. BUY TODAY

WAIT 6 MONTHS

WAIT 1 YEAR

$400,000

$409,563

$419,127

6.625% RATE

6.375% RATE

6.250% RATE

$3,166/MO

$3,172/MO

$3,208/MO

WHAT THIS MEANS This example compares buying today with waiting 6 months or 1 year. It shows how

changes in the projected home price and interest rate could affect the cash needed and monthly payment, helping you see the potential financial impact of waiting.

COST OF WAITING

$400,000 HOME 5% DOWN PAYMENT

WHERE DOES THE $15,631 COME FROM?

The estimated cost of waiting considers projected home price appreciation, changes in monthly payment and the estimated cost to refinance.

$19,127

PROJECTED APPRECIATION

+$504 PAYMENT DIFFERENCE

-$4,000 ESTIMATED REFI COST

=$15,631 COST OF WAITING

1-YEAR COST OF WAITING BREAKDOWN $19,127

$15,631

$15K$10K$5K-

$504

$0 $-5K

-$4,000 PROJECTED APPRECIATION

PAYMENT DIFFERENCE

BUY TODAY VS. WAIT 1 YEAR

ESTIMATED REFI COST

BUY TODAY

WAIT 1 YEAR

DOWN PAYMENT

$20,000

$21,958

INTEREST RATE

6.625%

HOME PRICE

$400,000

LOAN AMOUNT

$380,000

TOTAL MONTHLY EXPENSES

$3,166

COST OF WAITING

$419,127

$397,168 6.25%

$3,208

THE BIG PICTURE

COST OF WAITING

$400,000 HOME 20% DOWN PAYMENT

WHAT COULD WAITING 1 YEAR COST?

See how waiting could change the price, payment and cash needed to buy. ESTIMATED 1-YEAR COST OF WAITING

$12,680

Buying today vs. waiting 1 year

HOME PRICE

CASH NEEDED

MONTHLY PAYMENT

+$19,127

+$1,376

+$27

$400,000 -> $419,127

$27,000 -> $28,958

$3,166 -> $3,208

THE COST BUILDS AS THE PRICE OF THE HOME RISES

Even with a lower projected rate, the buyer is financing a more expensive home. BUY TODAY

WAIT 6 MONTHS

WAIT 1 YEAR

$400,000

$409,563

$419,127

6.625% RATE

6.375% RATE

6.250% RATE

$2,533/MO

$2,546/MO

$2,560/MO

WHAT THIS MEANS This example compares buying today with waiting 6 months or 1 year. It shows how

changes in the projected home price and interest rate could affect the cash needed and monthly payment, helping you see the potential financial impact of waiting.

COST OF WAITING

$400,000 HOME 20% DOWN PAYMENT

WHERE DOES THE $12,680 COME FROM?

The estimated cost of waiting considers projected home price appreciation, changes in monthly payment and the estimated cost to refinance.

$19,127

PROJECTED APPRECIATION

+$3,553 PAYMENT DIFFERENCE

-$10,000 ESTIMATED REFI COST

=$12,680 COST OF WAITING

1-YEAR COST OF WAITING BREAKDOWN $19,127

$15K-

$12,680

$10K$5K-

$3,553

$0 $-10K PROJECTED APPRECIATION

PAYMENT DIFFERENCE

BUY TODAY VS. WAIT 1 YEAR

-$10,000 ESTIMATED REFI COST

BUY TODAY

WAIT 1 YEAR

DOWN PAYMENT

$80,000

$83,825

INTEREST RATE

6.625%

HOME PRICE

$400,000

LOAN AMOUNT

$320,000

TOTAL MONTHLY EXPENSES

$2,533

COST OF WAITING

$419,127

$335,302 6.25%

$2,560

THE BIG PICTURE

COST OF WAITING

$500,000 HOME 5% DOWN PAYMENT

WHAT COULD WAITING 1 YEAR COST?

See how waiting could change the price, payment and cash needed to buy. ESTIMATED 1-YEAR COST OF WAITING

$19,539

Buying today vs. waiting 1 year

HOME PRICE

CASH NEEDED

MONTHLY PAYMENT

+$23,909

+$2,517

+$52

$500,000 -> $523,909

$36,000 -> $38,517

$3,957 -> $4,009

THE COST BUILDS AS THE PRICE OF THE HOME RISES

Even with a lower projected rate, the buyer is financing a more expensive home. BUY TODAY

WAIT 6 MONTHS

WAIT 1 YEAR

$500,000

$511,954

$523,909

6.625% RATE

6.375% RATE

6.250% RATE

$3,957/MO

$3,977/MO

$4,009/MO

WHAT THIS MEANS This example compares buying today with waiting 6 months or 1 year. It shows how

changes in the projected home price and interest rate could affect the cash needed and monthly payment, helping you see the potential financial impact of waiting.

COST OF WAITING

$500,000 HOME 5% DOWN PAYMENT

WHERE DOES THE $19,539 COME FROM?

The estimated cost of waiting considers projected home price appreciation, changes in monthly payment and the estimated cost to refinance.

$23,909 PROJECTED APPRECIATION

+$635 PAYMENT DIFFERENCE

-$5,000 ESTIMATED REFI COST

=$19,539 COST OF WAITING

1-YEAR COST OF WAITING BREAKDOWN $23,909

$20K-

$19,539

$15K$10K$5K-

$635

$0 $-5KPROJECTED APPRECIATION

PAYMENT DIFFERENCE

BUY TODAY VS. WAIT 1 YEAR

-$5,000 ESTIMATED REFI COST

BUY TODAY

WAIT 1 YEAR

DOWN PAYMENT

$25,000

$27,517

INTEREST RATE

6.625%

HOME PRICE

$500,000

LOAN AMOUNT

$475,000

TOTAL MONTHLY EXPENSES

$3,957

COST OF WAITING

$523,909

$496,392 6.25%

$4,009

THE BIG PICTURE

COST OF WAITING

$500,000 HOME 20% DOWN PAYMENT

WHAT COULD WAITING 1 YEAR COST?

See how waiting could change the price, payment and cash needed to buy. ESTIMATED 1-YEAR COST OF WAITING

$12,757

Buying today vs. waiting 1 year

HOME PRICE

CASH NEEDED

MONTHLY PAYMENT

+$23,909

+$1,909

+$33

$500,000 -> $523,909

$105,000 -> $106,908

$3,165 -> $3,198

THE COST BUILDS AS THE PRICE OF THE HOME RISES

Even with a lower projected rate, the buyer is financing a more expensive home. BUY TODAY

WAIT 6 MONTHS

WAIT 1 YEAR

$500,000

$511,954

$523,909

6.625% RATE

6.375% RATE

6.250% RATE

$3,165/MO

$3,182/MO

$3,198/MO

WHAT THIS MEANS This example compares buying today with waiting 6 months or 1 year. It shows how

changes in the projected home price and interest rate could affect the cash needed and monthly payment, helping you see the potential financial impact of waiting.

COST OF WAITING

$500,000 HOME 20% DOWN PAYMENT

WHERE DOES THE $12,757 COME FROM?

The estimated cost of waiting considers projected home price appreciation, changes in monthly payment and the estimated cost to refinance.

$23,909 PROJECTED APPRECIATION

+$848 PAYMENT DIFFERENCE

-$12,000 ESTIMATED REFI COST

=$12,757 COST OF WAITING

1-YEAR COST OF WAITING BREAKDOWN $23,909

$20K$15K-

$12,757

$10K$5K-

$848

$0 $-10K-

-$12,000 PROJECTED APPRECIATION

PAYMENT DIFFERENCE

BUY TODAY VS. WAIT 1 YEAR

ESTIMATED REFI COST

BUY TODAY

WAIT 1 YEAR

DOWN PAYMENT

$100,000

$104,782

INTEREST RATE

6.625%

HOME PRICE

$500,000

LOAN AMOUNT

$400,000

TOTAL MONTHLY EXPENSES

$3,165

COST OF WAITING

$523,909 $419,127 6.25%

$3,198

THE BIG PICTURE

COMMON MORTGAGE TERMS AMORTIZATION The process of paying off a mortgage over time through regularly scheduled payments.

Each mortgage payment generally includes both principal and interest. Early in the loan, more of the principal-and-interest payment goes toward interest. Over time, more goes toward reducing the principal balance.

ANNUAL PERCENTAGE RATE (APR) A measure of the annual cost of borrowing that includes the interest rate plus certain loan costs and fees.

The interest rate tells you what you’re being charged to borrow the money. APR provides a broader way to compare loan costs because it incorporates certain additional finance charges.

APPRAISAL An independent professional opinion of a property’s value.

An appraisal helps the lender determine whether the home’s value supports the amount being financed. The appraised value may be different from the purchase price.

BRIDGE LOAN Short-term financing that can help a homeowner purchase a new home before selling their current one.

A bridge loan may allow qualified buyers to access equity from their current home to help with the purchase of their next home before the current property is sold.

BUYDOWN A financing strategy that reduces the borrower’s interest rate or payment for a specified period. Funds are paid upfront to help reduce the interest rate or monthly principal-and-interest payment. Depending on the program, a buydown may be temporary or permanent and may be funded by the buyer, seller or another eligible party.

CLOSING COSTS Expenses associated with obtaining a mortgage and completing a real estate transaction. These may include lender fees, appraisal fees, title-related costs, taxes, insurance and other expenses. Closing costs are separate from the home’s purchase price and down payment.

DEBT-TO-INCOME (DTI) RATIO The percentage of a borrower’s gross monthly income used to pay monthly debts. Lenders compare qualifying monthly debt payments to gross monthly income to help determine how much additional debt a borrower may reasonably be able to take on.

DOWN PAYMENT The portion of the home purchase price the buyer pays upfront.

The amount required depends on the loan program and borrower qualifications. Some programs allow relatively low-down payments, and certain eligible borrowers may qualify for financing with no down payment.

EQUITY The difference between a home’s current value and the amount owed against it. If a home is worth $400,000 and the mortgage balance is $250,000, the homeowner has approximately $150,000 in equity before accounting for selling costs or other liens.

ESCROW Funds held by a third party for a specific purpose during or after a real estate transaction.

During the purchase, escrow can refer to money or documents held until certain conditions are met. After closing, an escrow account may also be used to collect and pay property taxes and homeowners insurance.

INTEREST RATE The percentage a lender charges for borrowing money.

The interest rate is one factor used to determine the monthly principal-and-interest payment. Rates can vary based on market conditions, loan type, borrower qualifications and other factors.

LOAN-TO-VALUE (LTV) RATIO A comparison between the amount being financed and the property’s value.

If a home is valued at $400,000 and the loan amount is $320,000, the LTV is 80%. LTV can affect loan eligibility, mortgage insurance requirements and available financing options.

MORTGAGE INSURANCE Insurance that protects the lender if a borrower defaults on the mortgage.

Mortgage insurance may be required depending on the loan program, down payment and amount financed. The type and cost can vary between conventional and government-backed loans.

PITI Principal, Interest, Taxes and Insurance.

These are common components of a monthly housing expense. Depending on the property and loan, the total payment may also include mortgage insurance, homeowners association dues or other costs.

POINTS / DISCOUNT POINTS An upfront cost paid in exchange for a lower mortgage interest rate.

One discount point equals 1% of the loan amount. Paying points may reduce the interest rate, but whether it makes financial sense depends on the cost, rate reduction and how long the borrower expects to keep the loan.

PRE-APPROVAL A lender’s conditional determination of how much a borrower may qualify to finance based on reviewed financial information.

A pre-approval can help buyers understand their potential price range and show agents and sellers that financing has been reviewed. Final loan approval still depends on underwriting, the property and other loan requirements.

PREPAIDS Certain expenses collected in advance at closing.

Prepaids can include items such as homeowners insurance premiums, property taxes and prepaid interest. They are different from lender closing costs, even though both can be part of the total cash needed at closing.

PRINCIPAL The amount borrowed, excluding interest and other charges.

As principal is paid down, the outstanding loan balance decreases. Building equity can come from reducing the principal balance, an increase in the property’s value or a combination of both.

PRIVATE MORTGAGE INSURANCE (PMI) Mortgage insurance that may be required on certain conventional loans. PMI is commonly associated with conventional financing when the borrower has less than 20% equity at origination. Requirements, costs and cancellation rules vary based on the loan and individual circumstances.

RATE LOCK An agreement that secures an eligible mortgage interest rate for a specified period.

Once a rate is locked, the borrower is generally protected from market rate increases during the lock period, subject to the terms of the lock. Lock periods and available options vary.

RECAST A recalculation of a mortgage payment after a qualifying principal reduction.

After making a substantial payment toward the loan balance, an eligible borrower may be able to have the monthly principal-and-interest payment recalculated based on the lower balance without refinancing.

TITLE INSURANCE Insurance that helps protect against certain problems involving legal ownership of a property.

Title insurance can help protect the lender and, with an owner’s policy, the homeowner from certain covered title issues that existed before the property changed hands.

UNDERWRITING The lender’s review of the borrower, property and loan to determine whether financing requirements are met.

The underwriter reviews items such as income, assets, credit, debts and property information. Additional documentation may be requested before final loan approval.

WHAT

FANNIE

FREDDIE

FORECLOSURE

7 Yrs

SHORT SALE

2 Yrs/4 Yrs LTV Restrictions & Ext Circumstances

CH 7 BKCY

4 Yrs from Discharge

CH 13 BKCY

2 Yrs from Discharge Date; 4 Yrs from Dismissal

2 Yrs from Discharge

MINIMUM CREDIT SCORE

580

No Minimum AUS Approval Required

MINIMUM DOWN PAYMENT

3% First-Time Homebuyer 5% If Borrower Owned Property in Most Recent 3 Years

MAXIMUM LOAN AMOUNT

$832,750

SELLER CONCESSION

3% (>90% LTV) 6% (75-90% LTV) 9% (≤75% LTV)

Exceptions Allowed

FHA

USDA

JUMBO

3 Yrs

2 Yrs

3 Yrs

Investor Specific

3 Yrs 2 Yrs Exception Possible

Underwriter Discretion

3 Yrs

Investor Specific

2 Yrs from Discharge

3 Yrs from Discharge

Investor Specific

3 Yrs from Discharge

Usually 4-7 Yrs. from Completion

1 Yr of the payout must 1 Yr of the payout elapse and pm must elapse and pmt history must be history must be satisfactory satisfactory 580

500-579 scores permitted w/ additional factors

Exceptions Allowed

500

580

620

3.5%

10%

$541,287 Varies by County

No Maximum Loan Amount With Full Eligibility

Maximum Loan Amount Determined by USDA Income and Ratio Limits

$10 Million

Investor Specific

THE COST OF WAITING IS MORE THAN A RATE THERE IS NO PERFECT TIME TO BUY A HOME. BUT WAITING FOR THE PERFECT RATE COULD COME WITH A COST. As the examples in this booklet illustrate, a lower future interest rate does not necessarily mean a lower overall cost. If home prices continue to rise while you wait, you could be looking at a higher purchase price, a larger loan amount, more cash needed at closing and potentially a higher monthly payment. The scenarios in the booklet specifically demonstrate how those factors can change even when the projected interest rate declines. And there is another important factor to consider: time. Buying a home gives you the opportunity to begin building equity as you pay down your mortgage and as the value of your home may increase over time. Waiting means postponing that opportunity.

WAITING COULD MEAN: HIGHER HOME PRICE The home you want today could cost more later.

MORE CASH NEEDED A higher purchase price could mean bringing more money to closing.

LARGER LOAN AMOUNT Even with a lower rate, you may need to finance more.

DELAYED EQUITY Waiting also means waiting to begin building potential home equity.

Know the numbers. Understand your options. Make an informed decision.

READY TO SEE WHAT THE NUMBERS LOOK LIKE FOR YOU? EVERY HOMEBUYER AND EVERY FINANCIAL SITUATION IS DIFFERENT. The examples in this booklet are designed to show how changes in home prices and interest rates could affect the cost of waiting. But the numbers that matter most are your numbers. Let’s look at your goals, budget, down payment and financing options to help you understand what buying today could look like for you.

LET’S RUN YOUR NUMBERS.

Connect with me for a personalized mortgage review and let’s see what your options look like today.

DOUG STAHLSCHMIDT

Branch Manager | NMLS# 281228

314-952-3684

Doug.Stahlschmidt@nafinc.com NAF.com/DougStahlschmidt

Equal Housing Opportunity. This is not a loan commitment or guarantee of any kind. Terms and conditions apply. Subject to borrower and property qualifications. Not all applicants will qualify. Rates and terms are subject to change without notice. All mortgage loan products are subject to credit and property approval. © 2026 New American Funding, LLC. NMLS #6606. nmlsconsumeraccess.org. 1 MacArthur Place, Suite 800, Santa Ana, CA 92707 newamericanfunding.com. (800) 450-2010. Appraisal may be required in some cases. No loan limit with full entitlement. For more information, visit: https://www.benefits.va.gov/homeloans/index.asp. Must be in USDA approved area. Income and asset limitations apply. Non-traditional credit references, such as rental and utility payments, may be used to validate a current score or to provide credit references when no score exists. Non-traditional credit references, such as rental and utility payments, may be used to validate a current score. 09/2026