Buy Now, Refinance Later? The Truth About the 2025 Housing Market in Coachella Valley

If you’ve been waiting for mortgage rates to drop before buying a home, you’re not alone. But here’s a hard truth we’re seeing daily at MortgageWorks in Coachella Valley: home prices aren’t waiting for interest rates—and neither is the competition.

In fact, we’re helping many clients right now embrace a smart and increasingly popular strategy: buy now, refinance later.

Why Buyers Are No Longer Waiting

Over the past year, the Coachella Valley housing market has stayed surprisingly strong. Cities like Palm Desert, Indio, and Cathedral City continue to attract both full-time residents and seasonal buyers. While interest rates have been higher than the record lows we saw in 2020–2021, the steady demand and low inventory mean prices have not gone down—in many neighborhoods, they’ve gone up.

At MortgageWorks, we talk to people every week who regret waiting in 2023 or 2024, expecting prices or rates to fall. Instead, they’ve seen higher home values, more bidding wars, and less affordability overall. That’s why serious buyers are choosing a new mindset: marry the house, date the rate.

What Does "Buy Now, Refinance Later" Really Mean?

It means purchasing the home you love now—even if the rate isn’t ideal—with the plan to refinance when rates drop in the future. This approach works especially well in a market like the Coachella Valley, where desirable homes can be competitive, and where appreciation remains strong.

We help our clients:

• Lock in today’s home prices before they rise further.
  
  

• Use adjustable-rate mortgages (ARMs) or temporary buydown options for lower initial payments.
  
  

• Monitor rates and prepare for refinancing when it makes financial sense.
  
  

As always, your long-term strategy should be personalized. That’s why our team takes time to understand your goals and match you with a mortgage plan that balances today’s reality with tomorrow’s potential.

Refinancing Isn’t a Gamble—It’s a Strategy

Some buyers worry about refinancing being expensive or complicated. At MortgageWorks, we make the process seamless. If you buy a home now and rates fall later, we’re ready to walk you through the numbers and show you how refinancing could improve your monthly payment or help you pay off your loan faster.

We also stay in touch with our clients post-purchase, so when the market shifts, we’re already working behind the scenes to identify opportunities for savings.

The Coachella Valley Market Isn’t Cooling Down

From La Quinta to Rancho Mirage, we continue to see strong buyer interest. Many homes are still receiving multiple offers, especially those priced under $600,000. Waiting for the "perfect" interest rate could mean losing out on a home you love—or getting priced out altogether.

Remember: you can’t refinance a missed opportunity.

Frequently Asked Questions

Is it risky to buy a home before rates go down?
Buying a home at today’s interest rates isn’t necessarily risky if you have a sound strategy. The key is to make sure your monthly payment fits your budget and to work with a lender like MortgageWorks that will help you refinance when the timing is right. You’re securing a place to live, building equity, and avoiding the risk of rising home prices while keeping the door open to lower rates in the future.

How soon can I refinance after buying a home?
Most lenders require you to wait at least six months before refinancing, but it depends on the loan program and your financial goals. At MortgageWorks, we keep track of your loan timeline and the market conditions so we can guide you toward the ideal window for refinancing when rates improve.

Will I have to pay closing costs again when I refinance?
Yes, refinancing does come with closing costs, but they’re often smaller than those from your original purchase. Depending on the loan and your equity, you may be able to roll those costs into the new loan. We’ll walk you through your options and help you calculate the break-even point to see if refinancing makes financial sense.

What if rates don’t go down for a long time?
If rates remain higher for longer than expected, you still benefit from buying now. You’ll have locked in your home at today’s price, which could save you thousands as home values continue to rise in the Coachella Valley. Plus, you’ll be building equity instead of paying rent, and we can always explore other ways to improve your loan down the line.

Is this strategy only for first-time buyers?
Not at all. Whether you’re buying your first home, moving up, or investing in a second home in Palm Springs or La Quinta, this strategy can work for you. We tailor mortgage plans for each individual, regardless of experience level or purchase history.

Can I still use a low down payment loan with this strategy?
Absolutely. FHA loans, VA loans, and even some conventional loans allow for low down payments and work well with a buy-now-refinance-later approach. The key is to get into the home at a monthly payment you’re comfortable with and stay in touch with your lender about refinancing opportunities.

Ready to Talk Strategy?

If you’re thinking about buying a home in the Coachella Valley, let's talk about whether buy now, refinance later is the right move for you. At MortgageWorks, we’ll walk you through the options, run the numbers, and help you make the most informed decision possible.

Call Art Alvarez at MortgageWorks today and let’s create a mortgage strategy that works for your future. Your answers are on the house.

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.