What Buyers Should Know About Interest Rates in 2026

Interest rates are one of the most talked-about aspects of buying a home — and often one of the most misunderstood.

While rates matter, they’re only one part of the overall picture.

Rates Are Just One Piece of Affordability

A buyer’s monthly payment depends on several factors, including:

• Purchase price

• Interest rate

• Taxes and insurance

• Loan type and term

Focusing only on rates can cause buyers to overlook strong opportunities that still make financial sense.

Waiting for the “Perfect” Rate Can Be Risky

Trying to time the market perfectly often leads to missed opportunities. Home prices, inventory levels, and competition all affect buying power — sometimes more than small rate fluctuations.

Many buyers who waited in previous years found themselves facing higher prices even when rates eventually adjusted.

Why Preparation Matters

Understanding your numbers before you start shopping gives you confidence. A strong pre-approval and a clear budget allow you to move decisively when the right home appears.

The Takeaway

Rather than focusing on headlines, buyers benefit most from understanding how current rates impact their personal situation — and what options are available to them.

The right guidance turns uncertainty into clarity.

Thinking about your next move?
I’m Meghan Hess, a local real estate resource serving Western Massachusetts and Northern Connecticut, here to help you move into your next chapter with clarity, strategy, and confidence.