Fewer Homebuyers Are Waiting for Rates to Fall, Even As More Expect them to Rise

October 22, 2026

COLUMBIA, Mo. – Prospective homebuyers are less willing to wait for mortgage rates to fall before buying a home, even as most of them expect rates to be higher a year from now,

according to a new report from Veterans United Home Loans, the nation’s No. 1 VA purchase lender.

The Veterans United State of Mind report tracks how prospective homebuyers feel about the housing market, their path to buying and what is driving their decisions. This year’s third quarter survey reached more than 900 prospective homebuyers, including Veterans, service members and civilians who plan to buy within the next three years.

In Veterans United’s third quarter survey, 57% of respondents said they expect mortgage rates to be higher within the next year, up from 45% a year ago.Yet, only 32% of respondents said they would wait for mortgage rates to fall before buying a home, down 7 points year over year. Nearly three quarters of respondents (73%) said they plan to purchase within the next year.

“Buyers aren’t expecting a perfect market,” said Chris Birk, vice president of mortgage insight at Veterans United. “More of them appear willing to make a move without waiting for rates or prices to fall. They’re adjusting their expectations to the market that’s in front of them.”

Buyers Adjust to Current Market Conditions

Fewer prospective buyers say improved market conditions would motivate them to act. The group citing lower interest rates as a reason to move forward fell from 49% to 43% in the third quarter, while lower home prices declined from 51% to 47%, and more housing inventory fell from 29% to 25%.

Veterans and service members showed the sharper decline in waiting on home prices to shift, with 32% saying they would consider waiting for lower home prices, down from 39% in the second quarter. Among civilians, 34% would wait, down from 40% last quarter, while the share who would wait for lower mortgage rates held at 35%.

Civilians showed the larger drop in citing lower interest rates as a reason to move forward, from 48% to 39%, compared to 49% to 46% among Veterans and service members.Increased housing inventory as a motivator to purchase fell from 31% to 25% among Veterans and service members, while civilians ticked up 1 percentage point to 25%.

Share of buyers, Q2 2026 → Q3 2026

VA Benefit Remains an Advantage

Among Veterans and service members surveyed, 82% said their VA home loan benefit gives them an advantage as they look to buy in today’s market.

“The VA home loan can be valuable when buyers are dealing with high prices and higher borrowing costs,” Birk said. “For qualified Veterans and service members, benefits like no down payment and no private mortgage insurance can provide more flexibility when it’s time to buy. And in today’s market, increased inventory and greater opportunities to negotiate seller concessions are giving Veterans something many haven’t had in recent years – more options, negotiating power and a better chance at finding the home they’ve always wanted.”

Gen Z Military Buyers Report Greater Homebuying Confidence

Gen Z Veterans and service members also reported greater homebuying confidence than their civilian peers.

Among Gen Z Veterans and service members, 60% said buying a home feels within reach, compared to 44% of Gen Z civilians. More than half of respondents (54%) expressed confidence in purchasing within their planned timeframe, compared with 33% of Gen Z civilians.

Gen Z military respondents are closer to buying. Twenty-three percent plan to purchase within the next three months, compared to 7% of civilians.

More than 3-in-4 Gen Z Veterans and service members (78%) said their VA home loan benefit gives them an advantage in today’s market.

To view the methodology and full report, visit: https://www.veteransunited.com/education/fewer-hom...

About Veterans United Home Loans

Veterans United Home Loans, a full-service national direct lender based in Columbia, Missouri, closed more than $26 billion in loans in fiscal 2025 and was the nation’s No. 1 VA purchase lender, according to Department of Veterans Affairs Lender Statistics. The company's mission is to help Veterans and service members take advantage of the home loan benefits earned by their service.

VeteransUnited.com | 1-800-884-5560 | 550 Veterans United Drive, Columbia, MO 65201 | Veterans United Home Loans NMLS # 1907 (www.nmlsconsumeraccess.org). Private lender. Not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency. Licensed in all 50 states. Military advisors are paid employees of Veterans United. For State Licensing information, please visit www.veteransunited.com/licenses. Equal Housing Opportunity.