Are Mortgage Rates Really That High? 5 Common Homebuying Myths to Clear Up Before You Buy

Suzy’s Real Estate Quick Take

Lately, many would-be buyers share the same thought:

“Mortgage rates are too high right now — I’ll wait.”

But a recent survey of prospective homebuyers found that many buyers may be more pessimistic about current actual mortgage rates than they realize.

About 45% of prospective buyers believed mortgage rates were higher than they actually are, and 72% said they had delayed or paused their home search while waiting for rates to improve. These buyers had already been waiting about 13 months on average.

The question is: is always waiting for rates to fall really the better deal?

So What Are Mortgage Rates Right Now?

According to Freddie Mac’s Primary Mortgage Market Survey, as of September 3, 2026, the average U.S. 30-year fixed mortgage rate was about 6.71%. The prior week was 6.66%.

In other words, mortgage rates are indeed still in a range many buyers consider elevated — but week-to-week changes may not be as dramatic as people imagine.

Of course, Freddie Mac publishes a national average. The rate you actually get will be affected by many factors, such as:

• Credit Score
• Down Payment
• Loan Type
• Loan amount
• Property use
• Discount Points
• Market conditions that day
• Different lenders’ pricing

So the “mortgage rate” you see in the news doesn’t equal the rate every buyer can actually get.

Myth 1: You Must Wait Until Rates Are Very Low to Buy

Many buyers have an ideal number in mind right now. For example:

“I’ll buy when it hits 5%.”

But buying a home can’t be judged on the rate alone. Because if rates fall in the future, the market may also see:

• More buyers returning to the market
• More competition for good homes
• Fewer seller concessions
• Price changes

Conversely, in a market where buyers are more cautious, there are sometimes better opportunities to negotiate price, closing costs, or other terms.

So the real comparison isn’t:

“Are rates high today?”

It’s:

“Given today’s prices, rates, and negotiating room, does the overall cost work for me?”

Myth 2: You Must Have a 20% Down Payment to Buy

A 20% down payment certainly has its advantages. For example, in some loan scenarios it can reduce or avoid mortgage insurance, and loan terms may be more favorable.

But 20% is not a requirement for every mortgage. Different conventional, FHA, VA, USDA, or other loan programs have different down payment requirements.

So if your biggest question right now is:

“I haven’t saved 20% yet — does that mean I can’t buy at all?”

The answer isn’t necessarily.

Myth 3: Your Credit Score Must Be Very High to Start

Credit score is indeed very important. It can affect:

• Whether your loan is approved
• Which loan types you can choose
• Your mortgage rate
• Mortgage insurance
• Overall loan cost

But it’s not true that only people with very high credit scores can buy a home. Qualification standards differ across loan programs and lenders.

So rather than looking at your credit score and concluding “I can’t buy,” a more practical approach is to first have a qualified mortgage professional evaluate your current situation.

Sometimes you need to improve your credit. Sometimes you already qualify for certain loan terms. Those are two very different things.

Myth 4: Without a Lot of Cash, There’s No Other Help Available

For some Arizona buyers, there are currently different Down Payment Assistance resources.

For example, the Arizona Department of Housing offers HOME Plus and related programs for eligible homebuyers.

Different programs have income, property-use, location, loan, and other qualification requirements — and policies can change.

So don’t only ask:

“How much do I need to save to buy?”

Also check:

“Do I currently qualify for any homebuyer assistance program?”

Myth 5: The Rate in the News Is the Only Rate I Can Get

Beyond the fact that different lenders may offer different loan terms, some buyers also consider Discount Points.

Simply put, you pay part of the upfront cost at closing in exchange for a lower mortgage rate.

But discount points aren’t “worth it just because you pay them.” What really needs calculating is the break-even point: how long do you need to stay, and how much interest do you save each month, to earn back the cost of the points?

If you expect to move soon or refinance, paying points may not be suitable. If you expect to hold the loan long-term, the result may differ.

So when comparing loans, you shouldn’t only ask:

“Which lender has the lowest rate?”

You should also compare:

Rate, APR, points, closing costs, and monthly payment.

Waiting for Rates to Fall Has Its Own Cost

This survey had another noteworthy finding. Among those who delayed buying because of mortgage rates, some buyers later said they regretted not starting earlier.

That doesn’t mean “everyone should buy right now.” It’s a reminder of one thing: waiting is itself a financial decision.

You might get a better rate — or you might face different prices, competition, and market conditions. No one can accurately predict which day will bring the “lowest rate.”

What Buying a Home Should Really Be Judged On: Overall Affordability

If you’re already considering buying, rather than constantly guessing when mortgage rates will hit bottom, first get a few numbers clear:

• The mortgage rate you can actually get today
• Which loan programs you can apply for
• How much down payment is needed
• Monthly principal + interest
• Property tax
• Homeowners insurance
• HOA
• Mortgage insurance
• Closing costs
• Whether you qualify for down payment assistance
• The pros and cons of buying now vs. continuing to wait

What truly matters in the end isn’t:

“Is the rate the lowest?”

It’s:

“Given my current income, cash, monthly payment, and life plans, can I afford this home?”

When the answer is clear, it’s much easier to make the homebuying decision that’s right for you.

A real estate advisor who understands homes — and who understands the value of real estate investment.