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If you’re waiting for 6% rates, you’re already losing

I get the same question all of the time:

“When are rates coming down?”

And every time I get this question, I have the same answer: That’s the wrong question. In fact, it’s a dangerous one—especially if you’re a homebuyer waiting for a magical interest rate to make your dreams come true.

In this market, success doesn’t come to those who wait—it comes to those who act, who run the numbers, and who write the offer that works today.

This week, I brought in the guys from Convoy Home Loans to break down the mindset that separates buyers who win from those who stay stuck on the sidelines. Here are three costly mistakes that too many homebuyers are making right now:

1. Waiting for rates to drop before getting serious

Let’s be real: a lot of buyers have convinced themselves that 6% makes real estate “work”—and 7% doesn’t. That’s not strategy, that’s laziness. If the deal only pencils at 6%, it’s not a good deal.

You don’t need a crystal ball. You need discipline. As we discussed in the episode, buyers who sit around waiting for news alerts about falling rates have already missed the move. Rates can shift quickly, and by the time you apply, lock, and close—that rate is gone.

Don’t bet your future on a Fed pivot. Structure deals around today’s cost of capital. Pencil in 7% or even 10%. If it still works, write the offer.

2. Structuring deals too tight

A DSCR loan—short for Debt Service Coverage Ratio—is a loan primarily used by real estate investors. Instead of relying on your personal income or W-2s, a DSCR loan looks at the income the property itself generates. If the projected rent covers the monthly debt obligation (i.e., a 1.0 DSCR), you qualify.

That’s very different from a conventional loan, which looks at your personal debt-to-income ratio, tax returns, employment history, and so on. Conventional loans are great for owner-occupants, but they weren’t built with investors in mind.

But just because a loan program allows you to qualify at a 1.0 DSCR doesn’t mean you should be buying at that razor-thin margin. Appraisers don’t always see rent potential the same way you do.

If you’re building your model around a perfect outcome, you’re not investing—you’re gambling.

DSCR loans give you flexibility—but they also demand discipline. Just because you qualify at a 1.0 doesn’t mean that’s how you should underwrite your deals. Give yourself a bigger margin. Aim for a 1.2 DSCR when modeling your deals—even if you technically qualify at 1.0. You’ll thank yourself when that unexpected repair hits or a tenant skips town.

3. Not checking out all of your options

Let’s clear something up: you can’t “shop” conventional rates like you think you can. Every lender is pulling from the same pool (Fannie Mae, Freddie Mac, FHA, VA). That’s why comparing traditional mortgage offers often comes down to a marginal difference in fees, not terms.

But DSCR? That’s a different ball game.

Some lenders are currently pricing DSCR loans with 25% down in the mid-6s—lower than the national average for a conventional 30-year loan. Moreover, Convoy is actually doing 15% down options with no prepayment penalty and solid pricing for experienced investors. As I mentioned before, depending on the math, that doesn’t mean this is the right way to go, but it is certainly worth checking out.

Don’t assume conventional loans are your only option. If you’re an investor, shop DSCR products. With the right volume and relationship, you can beat the market.

Bottom line: Stop waiting. Stop asking the wrong questions. The best time to buy real estate is when supply is up, demand is down, and sellers are negotiable. That time is right now—so build your buy box, run the numbers with 7%–10% rates, and write disrespectful offers.

ResiClub chart of the week:

This week, ResiClub’s Lance Lambert highlighted a growing shift in housing market dynamics: In April 2025, there were nearly 500,000 more active U.S. home sellers than buyers, according to Redfin.

That is the widest national gap—of course, this varies a lot by market—in a decade.

During the Pandemic Housing Boom, demand surged and inventory plummeted. But since rates spiked in 2022, buyer activity has cooled—and sellers now increasingly outnumber buyers.

As ResiClub has documented, this shift is most pronounced in the Sun Belt, with softening demand in parts of Texas, Florida, Colorado, and Arizona. Meanwhile, sellers still hold more leverage in tighter markets across the Northeast and Midwest.

So while conditions vary, the national trend has clearly tilted toward buyers in 2025.

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