Los Altos Market: Is Waiting for Lower Rates a Costly Bet?

In Los Altos, home prices have risen about 5% per year on average over the past 5 decades.
Many buyers are delaying purchases, expecting mortgage rates, now 5.5%–7%, to decline soon.
If rates fall 1% but prices rise 5% in a year, monthly payments may stay similar or increase.
Meaningful price declines are historically rare in supply-constrained markets like Los Altos.
Buyers can refinance later, buy down rates, or use equity programs to manage financing costs.