When mortgage rates rise, buyers naturally wonder if waiting for lower rates will save them money. But in Colorado’s fast-moving housing market, the tradeoff is more complex. While rates may eventually fall, home prices are expected to keep climbing. For buyers, the real question is whether the savings on interest will outweigh the cost of higher prices down the road.
Where Rates Stand in 2025
As of mid-2025, the average 30-year fixed mortgage rate sits at 6.7%, up sharply from 3.1% in early 2021. While rates could eventually ease if inflation continues to cool, experts do not expect a return to pandemic-era lows.
The Cost of Waiting: A Colorado Example
Let’s compare two scenarios for a Denver home priced at $600,000 in 2025.
Scenario A: Buy Now
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Purchase price: $600,000
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10% down payment: $60,000
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Loan amount: $540,000
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Interest rate: 6.7%
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Monthly principal & interest: about $3,490
Scenario B: Wait One Year for Lower Rates
Assume rates fall to 6.0%, but Colorado home prices rise by a projected 4% (historical average).
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Purchase price: $624,000
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10% down payment: $62,400
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Loan amount: $561,600
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Interest rate: 6.0%
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Monthly principal & interest: about $3,365
At first glance, Scenario B saves about $125 per month. But buyers pay $24,000 more upfront for the home, plus a larger down payment. Over time, higher equity gains in Scenario A may outweigh the short-term monthly savings in Scenario B.
Long-Term Equity Impact
Colorado home values have a strong track record of appreciation:
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Denver home values rose 70% between 2012 and 2019
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Pandemic boom added another 35% between 2020 and 2023
Waiting risks missing out on another year of appreciation. In the example above, buying in 2025 secures ownership at $600,000; by 2026, that same property could be worth $624,000 or more. That $24,000 increase accrues to the seller if you wait, instead of building equity for you.
What About Refinancing?
Many Colorado buyers adopt the “marry the house, date the rate” strategy: buy now, refinance later. If rates do decline, refinancing can lower monthly payments without losing out on appreciation in the meantime.
For example, a buyer purchasing at 6.7% today who refinances to 5.8% in two years could reduce their payment by several hundred dollars per month—while already benefiting from home price appreciation.
Lifestyle Factors Beyond the Numbers
Beyond math, the decision also depends on lifestyle:
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Stability: Buying sooner locks in housing costs compared to rising rents. Denver’s average two-bedroom rent reached $2,200/month in 2025 and continues climbing.
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Location Choice: Today’s inventory offers more selection. Waiting may mean fewer options or more competition if rates fall and buyers flood back into the market.
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Personal Goals: Starting a family, wanting more space, or investing in Colorado property all influence whether buying sooner is the right move.
Final Thoughts
For Colorado buyers, the decision to buy now or wait hinges on more than just interest rates. While lower rates may reduce monthly payments, rising home prices often offset the savings. In many cases, buying sooner builds equity faster and provides stability in a market that consistently trends upward. At Corken + Company, we guide buyers through these scenarios to ensure decisions align with both financial and lifestyle goals. Visit www.corken.co or call 303-858-8003 to discuss your options.
