Between economic uncertainty, the potential for job loss, and elevated interest rates, buyers who start the homebuying process aren’t confident enough in what’s going on to finish the process of getting a new home. Hardy also thinks that buyers might not be convinced that they have the right house picked out.
“Backing out of the contract, for me, means they aren’t in love with the house,” she said. “So that goes to the realtor, like, ‘Are you showing them the right house?’ Usually, if someone really wants the house, they will find a way to make it happen. I still encourage people to buy, then if rates do come down, we will refinance to the lower rate.
“But if rates come down, the prices are going to go back up. So, I’m still encouraging people to proceed and not to back out.”
Julie Harris, broker owner of Harris Mortgages of Idaho, says that with so many people waiting for a shift, a quarter-point rate cut would provide the “hope” needed to encourage buyers and sellers to step out.https://t.co/jgoJtpPtyT
— Mortgage Professional America Magazine (@MPAMagazineUS) August 4, 2025
Hardy cautions those waiting for a drop in interest rates that there could be a return to a seller’s market as soon as rates drop and buyers flood the market.
“The uncertainty with the tariffs and interest rates potentially coming lower,” Hardy said. “I do feel like some people are sitting on the sidelines waiting for interest rates to get lower. However, I do think once interest rates do come down, then there’s going to be that surplus of buyers again. Then it’s going to be a seller’s market. Honestly, I think it’s still a great time to be a buyer right now.”
