Will Mortgage Rates Go Down in 2026? Interest Rate Predictions, Home Buying Strategy, and Real Estate Insight from JJ Herrera
There’s a story I think about every time someone asks me, “JJ, should I wait for mortgage rates to go down?”
A man once stood at the edge of a river, waiting for the current to slow before crossing.
He waited days. Then weeks. Then longer.
But the river never stopped moving.
It only changed pace.
That’s the real estate market.
And that’s exactly what interest rates do.
So Let Me Answer You Clearly
Will mortgage rates go down?
Yes.
And no.
They will move. They will adjust. They will rise, fall, stabilize, and shift again. That’s the nature of interest rates in the U.S. economy. But if you’re waiting for the perfect rate… you’re standing at the edge of that river.
And I don’t build my business on people standing still.
What the 2026 Real Estate Market Is Actually Showing Us
Right now, mortgage rates in 2025 were higher than what people got used to in previous years. That’s true. But in 2026 they are at their lowest point they have been in a long time, and people are still waiting for a dip. What most buyers don’t realize is this:
The market has already adapted.
- Buyers are still buying homes in Chattanooga, Knoxville, and across East TN
- Sellers are still listing because demand hasn’t disappeared
- Investors are still acquiring property because long-term appreciation hasn’t changed
- Commercial real estate in the USA continues to move with strategic buyers leading the way
The noise says “wait.”
The data says “adjust.”
The Bigger Question Nobody Asks
You’re not really asking about rates.
You’re asking:
“If I move now, will I regret it later?”
Let me give you something grounded in reality, not headlines:
If rates drop later, you can refinance.
If prices rise while you wait, you can’t go back and buy yesterday.
That’s the part most people overlook.
East Tennessee Isn’t the National Average and That Matters
I serve the East TN real estate market from Chattanooga to Knoxville, and I’ll tell you this without hesitation:
This region moves differently.
- Strong inbound migration
- No state income tax
- Desirable lifestyle and seasons
- Consistent demand from out-of-state buyers
- Higher-than-average appreciation compared to many U.S. markets
While the national average appreciation might sit around 1.5%–3%, East Tennessee often pushes closer to 3%–5% equity growth over time.
That means waiting here carries a different cost than waiting somewhere stagnant.
And that’s why generalized advice doesn’t work for specific markets.
I Didn’t Build My Career Waiting for Conditions to Be Perfect
Let me speak to you personally for a moment.
I didn’t become the number one buyer’s agent in my previous firm by waiting for ideal timing. I became that by moving with intention, studying the market, and staying wise but relentless in every decision.
And when I felt like I outgrew that environment… I didn’t get comfortable being the biggest fish in a small pond.
I moved.
I expanded.
I built a property management company on top of my real estate services because growth doesn’t ask permission. it demands action.
That same principle applies to you as a buyer or investor.
Strategy Will Always Beat Timing
If you’re waiting for mortgage interest rates to drop before buying a house, you’re making a timing decision.
If you’re analyzing your finances, your goals, your market, and your long-term equity position, you’re making a strategy decision.
And strategy wins more often than timing ever will.
What I Tell My Clients Across the Country
And yes, I work with clients far beyond Tennessee because agents across America trust me with their referrals.
Here’s what I tell them:
- Don’t chase the lowest rate. Chase the right deal.
- Don’t fear the market. Learn how to move in it.
- Don’t wait for certainty. Build confidence through understanding.
Because real estate has never rewarded hesitation long-term.
So… Should You Wait?
Only if waiting is part of a plan.
Not a reaction.
Not fear.
Not headlines.
A plan.
If you have a plan, I respect it.
If you don’t… that’s where I come in.
- JJ Herrera, your advocate, your strategist, your real estate agent.
