Buyers Holding Out for Lower Rates Risk Paying Higher Prices Later

Written by:

Rudi Davis

Date:

16 Feb 2026

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Many Atlanta homebuyers are making a costly mistake by holding out for mortgage rates to return to pandemic-era lows, according to Adrian Provost, CEO and Principal Broker at Realty ONE Group Terminus. Provost says the hope that 3% mortgages will return is unrealistic and could leave buyers facing higher prices in the future.

“A lot of people are still on the fence, hoping and praying that we’re going to see a 2020 again, thinking that the interest rates are going to drop back to the threes,” Provost says. He argues that buyers fail to recognize how exceptional those rates were. “That was a huge exception and a folly. That’s not normal. We’re returning to normalcy.”

Pandemic-Era Rates Were a One-Off

Provost maintains that the mortgage rates observed during the pandemic were driven by extraordinary global circumstances, not a new standard for borrowing. Those conditions, he says, were “literally created because of the circumstances on a global level.” He adds, “That was not really what you guys experienced back then.” According to Provost, buyers should not expect to see those rates again in their lifetime.

This misconception is especially common among homeowners who secured ultra-low rates during the pandemic. Many of these owners, he says, “already own a home and they have it at an interest rate of 3.5 or even in the twos sometimes, they’re not really in tune with the reality up-to-date.”

The result is a market gridlocked by unrealistic expectations. Existing homeowners are reluctant to sell and give up their low rates. At the same time, many buyers refuse to purchase at today’s higher rates, waiting for a return to what Provost describes as an “impossible” baseline.

Why Waiting Could Cost Buyers More

Provost cautions that waiting for lower rates could backfire. When interest rates eventually decrease, even slightly, he predicts a surge of pent-up demand will flood the market. “Once those interest rates do come down, even slightly, there’s going to be a lot more pent-up demand and a lot more competition,” he explains. “Those same homes that they can buy now at this price, yes, they might get a slightly discounted interest rate, but the prices are going to go up because the demand is going to be there.”

He argues that buyers who purchase now could end up paying less overall than those who wait for lower rates, while facing higher home prices as competition intensifies. In a market like Atlanta, which continues to see strong population growth and limited housing supply, Provost expects prices to rise quickly once demand returns.

Agent Messaging Faces New Hurdles

Convincing buyers to abandon hopes for past rates is a significant communication challenge for agents. Provost stresses the importance of honest conversations. “It’s really important for not just my agents but agents across the board to really be able to have those hard conversations with buyers to let them know that that wasn’t real,” he says.

This task is complicated by recent industry lawsuits and increased scrutiny of agent compensation, which have made buyers more skeptical of agent motivations. Agents must provide clear, data-driven explanations of market conditions while avoiding the appearance of pushing buyers to transact solely for commissions.

Provost recommends using transparency and historical data to help buyers see that pandemic-era rates were an outlier. Despite these efforts, he acknowledges many buyers remain resistant, clinging to the belief that rates will return to their recent lows.

Educating Buyers for Today’s Market

At Realty ONE Group Terminus, Provost’s team conducts thorough buyer consultations that include detailed needs assessments and frank discussions about market realities. “What I’m going to do is hold an in-depth buyer consultation with them to really identify what their needs are,” Provost says. “Everything with me has always been on the table upfront and transparent.”

These consultations emphasize the historical context of interest rates, helping buyers understand that pandemic-era rates were a rare exception rather than the norm. Provost argues that agents who can communicate this reality and remain transparent about their compensation will earn greater trust and be better equipped to guide buyers in the current market.

What’s Next for Atlanta’s Housing Market

Whether this educational approach is widely adopted may determine how quickly Atlanta’s market overcomes its current paralysis. Buyers waiting for the return of 3% mortgages risk missing out on today’s prices and could face steeper competition and higher costs when rates eventually fall.

Provost believes the Atlanta market is poised for significant growth if buyers adjust their expectations. “We’re at the cusp of a phenomenal start to a very long positive cycle,” he says, but only if buyers recognize that the conditions of 2020 and 2021 are unlikely to return. For now, the key to unlocking market movement may be straightforward: letting go of the past and making decisions based on today’s realities, not yesterday’s anomalies.