Are you wondering if now is the right time to buy a home — or if you should wait for mortgage rates to drop in 2026?
Here’s the short answer: Buying now can make a lot of sense for many buyers, but the best timing depends on your personal situation — not just the headlines. As we wrap up October 2025, mortgage rates are improving slightly, buyer activity is rising again, and inventory in the Twin Cities remains competitive. Let’s unpack what’s happening with rates, what it means for your buying power, and how to make the smartest move for your goals.
Where Rates Stand Today
As of late October 2025, the average 30-year fixed mortgage rate sits around 6.2%, down from earlier this year when many buyers were seeing rates above 7%. That’s encouraging progress — and many experts expect rates to hold in the mid-6% range for the rest of the year.
The Federal Reserve has already made several rate cuts in 2025 as inflation cooled, and while mortgage rates don’t always move in lockstep with Fed decisions, they tend to follow the same general trend. Economists predict we may see additional, modest drops in early 2026 — but no dramatic plunge.
In other words, the “big drop” many buyers have been waiting for isn’t likely to happen overnight. We’re in a slow, steady normalization phase — and the housing market is adjusting accordingly.
Why Buying Now Could Work in Your Favor
For many Twin Cities buyers, acting now rather than waiting can offer a few key advantages.
- You can lock in a good rate before competition intensifies.
As rates have eased from their 2024 highs, more buyers have started returning to the market. Acting now means less competition than we’re likely to see if rates fall further and more people jump back in. - Home prices are holding steady — not dropping.
Even when rates were higher, home values in the Eagan and greater Twin Cities area remained remarkably resilient. Sellers have adjusted expectations, but price declines have been modest at best. If rates dip, increased demand could easily push prices higher again, offsetting any savings you’d gain from a lower interest rate. - You can refinance later if rates fall.
“Marry the house, date the rate” is still solid advice — meaning you can buy the home you love now and refinance if (or when) rates move lower in the future. Waiting for the “perfect” rate could mean missing out on the right home entirely. - More homes are available to choose from.
Fall often brings a quieter real estate season in Minnesota, which can work to your advantage. With fewer active buyers in the market, sellers may be more flexible — especially those motivated to close before the year’s end.
Reasons to Wait (If You’re Not Quite Ready)
That said, there are situations where waiting could be the right move. If you’re still working on improving your credit, saving for a larger down payment, or paying down debt, those steps can have a bigger impact on your monthly payment than a small rate change.
Additionally, if you’re uncertain about your job stability or your long-term location plans, waiting until you have more clarity may bring peace of mind. Buying a home is a major decision, and it’s perfectly okay to take the time to prepare — especially if you’re aiming for a strong financial foundation going into 2026.
The key is to make the decision from a position of strength — not fear of “missing out.”
What’s Happening in the Twin Cities Market
Here in the Eagan and Twin Cities area, the fall 2025 market is showing steady, balanced conditions. Inventory levels are slowly improving after several years of tight supply, giving buyers a bit more breathing room. However, desirable homes — especially those in move-in-ready condition or near commuter corridors — still attract quick attention.
Average days on market are hovering around the mid-30s, which is a healthy sign of buyer engagement. Sellers are increasingly open to negotiations, from closing cost credits to inspection flexibility. This means today’s buyers can often secure better terms than they could when the market was more frenzied.
If you’ve been discouraged by the fast pace of the past few years, 2025 is bringing a window of opportunity — one where you can shop more thoughtfully without having to rush every decision.
The Smart Approach: Align Your Readiness with Market Reality
Instead of trying to “time the market,” focus on aligning your personal readiness with current market conditions.
Ask yourself:
- Do you have a stable income and job security?
- Are you comfortable with your monthly budget at today’s rates?
- Have you found a home or neighborhood that truly fits your lifestyle?
If you can answer “yes” to those questions, there’s little reason to wait — because what you gain in rate savings later could easily be offset by rising prices or increased competition.
But if you’re still building toward readiness, that’s okay too. You can spend the coming months improving your credit, reducing debt, and monitoring rates with professional guidance so you’re ready to act when the right opportunity appears.
Final Thoughts: Make Your Move When It’s Right for You
Interest rates are one part of the equation — but they’re not the whole story. Real estate decisions are most powerful when they’re based on your goals, your lifestyle, and your financial comfort level.
The truth is, the Twin Cities market is in a balanced position heading into 2026. Rates are better than they’ve been in nearly two years, inventory is improving, and the seasonal slowdown gives motivated buyers an edge.
If you’re ready to buy, there’s no need to sit on the sidelines waiting for something unpredictable. And if you’re not ready yet — let’s create a plan that gets you there.
Ready to Explore Your Options?
If you’re thinking about buying a home in Eagan or the Twin Cities, I’d love to help you explore your timing and options. Let’s review your budget, current mortgage rates, and available homes so you can make a confident, informed decision.
👉 Schedule a consultation with me today — we’ll talk strategy, not sales pressure.
Written by Lana Kalinowski, REALTOR® with Edina Realty, proudly serving Eagan and the greater Twin Cities area.
