By Stephen McCarthy
Everyone is guessing which way interest rates are heading. Maybe they’ll go up, maybe they’ll drop. The truth is, nobody knows for sure.
Kate Rockett at William Raveis Mortgage shared this update on 8/1/2025:
"The Fed met this week and held steady on interest rates. The next possible movement might come in September. The general feeling is that we’ll stay in this environment for a while. Rates may fluctuate slightly—maybe an eighth of a point here or there—but I believe we’ll remain in the mid to high sixes for a bit longer."
For me, instead of questions about rates, the better question is: Should I rent, buy, or move back in with my parents? Because no matter what mortgage rates are doing, one thing is certain—you need a place to live.
Not everyone has the “move home” option. And for those who do, the answer might be, “Thanks, but no thanks.”
So if moving home isn’t realistic, the more practical question becomes: Should I rent or buy?
🏠 Renting
Renting gives you short-term flexibility. You’re not responsible for maintenance, and you might be able to rent a nicer place in a better location than you could afford to buy.
If rates drop and home prices soften, you could be in a great position to buy later. Win-win.
🏡 Buying
Buying means you’re investing in real estate and building equity. You gain long-term stability, and if your property appreciates and rates improve, you benefit. Win-win.
🤔 So, What’s the Right Move?
Whether to rent or buy is a personal decision that depends on your financial situation, lifestyle, and goals.
💼 What About Investors?
Investors look at things differently. They evaluate cash flow, property condition, potential appreciation, and total investment—including the interest rate.
Even if rates are high, if the numbers work and the risk is manageable, investors will pay the market rate to meet their business objectives.
📚 My Take
I don’t believe in waiting around for rates to drop. Instead, educate yourself about mortgage rates, housing costs, market rents, and how your income, job outlook, and credit all align.
That way, you can make an informed decision based on what you know, not what you can’t control.
❓So What’s Best for You?
Rent, buy, or... something else?
Only you can decide what makes the most sense for your life right now.
This post was edited for clarity and grammar using Microsoft Co-Pilot
