By Joe Hafner
Principal Broker of Hafner Real Estate and REMLO with Texana Bank Mortgage
Updated August 11, 2026
If you can comfortably afford the payment, find a home that works for you and expect to remain there for at least five to seven years, buying now may make more sense than waiting for mortgage rates to fall.
That does not mean everyone should buy today. Buyers with uncertain employment, a possible transfer, plans to move again within a few years or a payment that would stretch their budget should probably wait.
The mistake is assuming that lower mortgage rates will automatically create a better buying opportunity. If rates fall, more buyers may enter the market. That can increase competition, reduce sellers’ willingness to negotiate and push home prices higher.
The right question is not simply:
Will mortgage rates go down?
It is:
Does the home, payment and negotiating opportunity available today make sense for my life and finances?
Is Now a Good Time to Buy a Home in Middle Tennessee?
The average 30-year fixed mortgage rate reached 6.69% during the week ending August 6, 2026. That makes monthly payments a legitimate concern for today’s homebuyers.
At the same time, buyers have considerably more negotiating leverage than they did during the intensely competitive market of 2020 through 2022.
Greater Nashville REALTORS® reported 15,636 properties in inventory at the end of July 2026. Single-family homes averaged 54 days on the market.
That creates an unusual tradeoff:
- Financing is expensive.
- Buyers have more homes to consider.
- Properties are remaining available longer.
- Sellers may be more receptive to lower offers.
- Buyers can frequently negotiate closing costs, repairs and mortgage-rate buydowns.
Waiting might produce a lower interest rate. Buying now, however, may provide a better price and more favorable terms. No one can guarantee which opportunity will ultimately cost less.
Who Should Consider Buying a Home Now?
Buyers approaching the lower edge of affordability
Some buyers are shopping near the lowest price at which suitable homes are available.
If home prices rise while they wait for mortgage rates to fall, they may lose access to that portion of the market. Even a modest price increase can eliminate homes that currently meet their space, location or financing requirements.
For these buyers, waiting carries a particular risk: mortgage rates might eventually improve, but the homes themselves may no longer be affordable.
Buyers expecting to remain in the home for five to seven years
Purchasing a home involves closing costs, moving expenses and other transaction costs. Short-term market fluctuations also matter more when someone needs to sell again quickly.
A buyer planning to remain in the home for at least five to seven years has more time to absorb those costs and move through normal market cycles.
Cash buyers and buyers making substantial down payments
Mortgage rates have less effect on buyers paying cash or financing a smaller portion of the purchase.
These buyers may benefit from today’s greater inventory and negotiating environment without assuming as much interest-rate exposure.
Buyers who find the right home and can comfortably afford it
A home is more than an interest rate.
If the property works for your needs, you expect to stay for several years and the complete monthly cost is manageable, purchasing it may be reasonable even if rates are higher than you would prefer.
That monthly cost should include principal and interest, property taxes, homeowners insurance, any mortgage insurance, homeowners association fees and expected maintenance.
Most importantly, the payment should work without relying on a future refinance.
Who Should Wait to Buy a Home?
Buying now is not the right decision when the purchase creates too much financial or personal risk.
Consider waiting if:
- Your employment situation is uncertain.
- You could be transferred or relocated within the next few years.
- You expect to sell again in fewer than five years.
- The payment would leave little room for savings or unexpected expenses.
- You need mortgage rates to fall for the payment to remain sustainable.
- The available homes do not reasonably meet your needs.
Being approved for a mortgage does not necessarily mean the payment fits comfortably into your life.
The objective is not to buy the most expensive home someone will finance. It is to purchase a home without creating constant financial pressure.
What Can Middle Tennessee Buyers Negotiate Right Now?
Many sellers recognize that they are competing for payment-sensitive buyers. Depending on the property and seller’s circumstances, buyers may be able to negotiate:
- A reduced purchase price
- Seller-paid closing costs
- Mortgage discount points or a rate buydown
- Inspection repairs
- Credits in place of repairs
- Appliances or other personal property
- Flexible closing or possession dates
- A home-sale contingency
These opportunities are property-specific. A new listing in excellent condition may still attract strong competition. An overpriced home that has been available for several months presents a very different opportunity.
A Recent Middle Tennessee Example
We recently represented a buyer purchasing a home listed between $500,000 and $600,000. The property had been on the market for several months.
Our buyer offered approximately $30,000 below the asking price and requested nearly $10,000 in seller-paid closing costs and mortgage-rate assistance.
The seller accepted without making a counteroffer.
That does not mean every seller will accept an offer approximately $40,000 below the asking price. It demonstrates why buyers should evaluate the entire negotiating opportunity—not just the advertised price and prevailing mortgage rate.
During 2020 through 2022, many buyers waited because competition was intense and sellers held most of the negotiating power. For a number of those buyers, both home prices and mortgage rates subsequently increased. Some were eventually priced out of homes they could once have purchased.
Waiting is not automatically the conservative choice. It carries its own risks.
What Happens if Mortgage Rates Fall After You Buy?
If mortgage rates fall sufficiently and refinancing makes financial sense, a homeowner may be able to replace the original mortgage with one carrying a lower rate and payment.
That possibility should be treated as a future benefit—not a promise.
Before purchasing, make sure the payment is manageable no matter what happens with mortgage rates. That way, falling rates become a welcome refinancing opportunity, while rising market rates do not increase the payment on your existing fixed-rate mortgage.
If the purchase only works because you expect to refinance soon, the transaction is too dependent on something outside your control.
Refinancing also involves qualification requirements and closing costs. A lower market rate does not guarantee that every homeowner will qualify or save enough to justify refinancing.
When Is Waiting the Better Decision?
Waiting may be appropriate if it allows you to:
- Improve your credit profile
- Increase your down payment or emergency reserves
- Pay down other debt
- Establish greater employment stability
- Clarify where you expect to live
- Reach a comfortable monthly payment
- Find a property better suited to your needs
The decision should not be driven by fear of missing out. It should be based on a realistic comparison between buying now and waiting.
How Do You Compare Buying Now With Waiting?
A useful analysis should consider:
- What can you comfortably afford today?
- What suitable homes are currently available?
- What price or seller concessions might be negotiable?
- What would your complete monthly payment be?
- What could happen if rates fall but prices and competition increase?
- How long do you expect to own the property?
- How much money would remain in reserve after closing?
This comparison cannot predict the future. It can reveal whether buying now makes sense without requiring a particular future outcome.
Frequently Asked Questions
Should I wait for mortgage rates to drop before buying a home?
Not necessarily. Lower rates can reduce the payment on the same loan amount, but they may also bring more buyers into the market. Increased competition can result in higher home prices and fewer opportunities to negotiate with sellers.
Compare the complete opportunity available today with the possible future opportunity—not just one interest rate with another.
Is it smart to buy now and refinance later?
It makes sense to refinance if rates fall enough, you still qualify, and the savings justify the expense of refinancing. However, you should never purchase a home that is only affordable if you can refinance it later.
The payment needs to be manageable from the beginning.
What happens to home prices when mortgage rates fall?
Lower mortgage rates generally improve buyers’ purchasing power and can increase housing demand. When more buyers compete for a limited supply of suitable homes, prices can rise and sellers may become less willing to negotiate.
Other economic and local market conditions can also affect prices, so the result is not guaranteed.
How long should I plan to own a home after buying?
There is no universal minimum, but buyers should generally expect to remain in the home for at least five to seven years. That provides more time to absorb purchase and sale costs and move through normal market changes.
Can buyers negotiate with Middle Tennessee sellers right now?
Yes, depending on the property. Some buyers are currently negotiating lower prices, seller-paid closing costs, inspection repairs, credits and mortgage-rate buydowns.
The property’s price, condition, time on the market and competing demand determine how much leverage a buyer has.
Start With a Complimentary Homebuying Readiness Review
Many prospective buyers assume they cannot purchase a home without knowing what financing options or properties may actually be available.
I offer a complimentary Homebuying Readiness Review using a soft credit inquiry that does not affect your credit score.
We will evaluate:
- Your current mortgage readiness
- A comfortable monthly-payment range
- Your estimated buying range
- Potential down-payment and financing options
- Opportunities for seller-paid costs or rate assistance
- Homes currently available in Middle Tennessee that may fit your needs and budget
There is no obligation to buy. The purpose is to replace assumptions with useful information so you can decide whether purchasing now or waiting is better for you.
Contact Joe Hafner at 615-585-5550 or Joe@HafnerRealEstate.com to request your complimentary Homebuying Readiness Review.
About the Author
Joe Hafner has more than 30 years of real estate experience and has participated in more than 1,000 transactions. He is the principal broker of Hafner Real Estate and a Real Estate Mortgage Loan Originator with Texana Bank Mortgage. His combined experience helps buyers evaluate both the property and the financing behind their purchase.
Joe Hafner, NMLS ID 2695299
Texana Bank Mortgage, NMLS 407536
Member FDIC | Equal Housing Lender