Homebuyers face a dilemma of whether to buy now with higher mortgage rates or wait for potentially lower rates.

Homebuyers face a quandary of whether to buy a home now with higher mortgage rates or wait for potentially lower rates. Lower rates provide financial breathing room for buyers, especially first-time homebuyers, but could also attract more prospective buyers, increasing competition and potentially driving up prices. Economists predict average mortgage rates may decline later this year, so some buyers opt for action now, while others wait for the possibility of lower rates.