Take the recent Fed rate hikes. They're designed to push borrowing costs high enough to cool the economy down without plunging it into recession. Over the past year and a half, the fear of the hikes and the increases themselves have driven mortgage rates steadily higher. But consumers who don't brush up on their economics may not realize that interest rates tend to move in cycles. After a prolonged increase, a slow drop usually occurs.
Smart shoppers can take advantage of that fact by waiting to buy until the downslide begins.
Some experts think the most recent cycle's slide may have just begun, given that the first hint of slowing economic growth appeared in reports on housing sales, construction activity, employment and manufacturing released in late May and early June. I have no doubt that the mortgage rate increases are designed to and are now hitting the housing sector. Anything that has a credit sensitivity will be hit by the current rout. If they wait a year and a half, they'll probably see lower rates yet. Of course, not everyone can or should put their buying plans on hold.