Should You Wait for Lower Rates to Rightsize on the Westside? | Colorado Peak Properties
Should You Wait for Lower Rates to Rightsize on the Westside?
What the summer 2026 market actually says about timing your move -- and why waiting may cost more than you think.
I hear this every week right now. Someone calls me, we have a great conversation about rightsizing to something smaller and more manageable on the Westside, and then at the end they say: "I think I'll just wait until rates come down a bit." I get it. Rates were in the threes just a few years ago. Six-point-something doesn't feel good compared to that. But here's the honest truth about that strategy: the math usually doesn't work the way people expect it to.
Let me show you what I'm actually seeing in the market right now -- on the Westside, specifically -- and let you decide.
Where Rates Actually Are (And Where They're Going)
As of June 25, Freddie Mac put the 30-year fixed at 6.49%. That rate has been essentially flat for six weeks. The experts who track this stuff closely are not predicting a dramatic drop anytime soon -- most forecasts have rates staying above 6% through the end of the year. Some say mid-2027 before we see 5-something, and even that's a guess.
Here's the thing about waiting for rates to drop: the moment rates do come down meaningfully, every buyer who's been sitting on the fence is going to jump at the same time. That's when bidding wars come back. That's when list price becomes a floor instead of a ceiling. The buyer leverage you have today -- and it's real -- evaporates fast when rates move.
What the Westside Looks Like Right Now
Inventory across Colorado Springs is up 19.3% from this time last year. We have 3,964 active homes on the market. For buyers, that's the most selection we've had in years. And on the Westside specifically, that means you're not competing with five other offers on a house the day it lists. You have time to think, time to inspect, time to negotiate.
Here's a quick look at where Westside median prices currently stand by zip:
| Zip Code | Neighborhood Area | Median Price (June 2026) |
|---|---|---|
| 80904 | Manitou Springs / West End | $433,000 |
| 80905 | Old Colorado City / SW | $410,000 |
| 80906 | Broadmoor / South Academy | $635,000 |
| 80907 | North Westside / UCCS area | $405,000 |
| 80919 | Rockrimmon / Flying W | $572,000 |
If you're rightsizing from a larger home to something in the $400K-$500K range, you're in the sweet spot where buyer leverage is strongest right now. Sellers in that range are negotiating. I've seen concessions on closing costs, price reductions, and sellers contributing to rate buydowns -- things that were essentially unheard of two years ago.
The Rightsizer's Math Problem
Here's where it gets interesting for my clients who are in their 50s, 60s, and 70s and own their current home with significant equity -- or no mortgage at all. When I run the numbers with them, the interest rate conversation looks completely different than it does for a first-time buyer financing 95% of a home.
If you're selling a $600,000 Westside home and buying a $425,000 condo or patio home, your mortgage -- if you even have one -- might be $100,000-$150,000 at most after you put that equity to work. At 6.49%, your monthly payment on $125,000 is around $790. If rates drop to 5.5% in two years, that same loan costs about $709 per month. You're talking $81 a month. Meanwhile, home prices have historically continued to creep upward. Two years of price appreciation could easily cost you more than that $81/month saves you.
I'm not saying rates don't matter. They do. But for a lot of the people I work with, the rate conversation is a smaller piece of the puzzle than they think. The bigger question is: what does your life look like in the home you're in now versus the home that actually fits you?
What I'm Telling Clients Who Are Ready to Move
If you've been thinking about this for a while -- if the three-story colonial that made sense when the kids were home is now more house than you want to manage -- summer 2026 is actually a solid window to act. Here's why, in plain terms:
You'll sell into a market where prices are still up 1.9% year-over-year. You'll buy in a market where you have options, negotiating room, and motivated sellers. Rates are where they are, but you can refinance in two years if they drop significantly. What you can't do is buy back the leverage you currently have as a buyer once rates come down and competition heats up again.
I've been helping people rightsize on the Westside for 20 years. The clients I've watched make the move when conditions were reasonable -- not perfect, but reasonable -- are the ones who look back and say they're glad they did it when they did. The ones who waited for everything to be perfect often waited a very long time.
If you'd like to run the actual numbers for your specific situation -- your home's value, what you'd net, what you'd spend on the right-sized place -- I'm happy to do that with you. No pressure, just math and a straight conversation.
Frequently Asked Questions
Will mortgage rates drop significantly before the end of 2026?
Most forecasters don't expect a dramatic drop. Freddie Mac's 30-year rate has held near 6.49% for six straight weeks as of late June 2026. While rates could ease slightly, most projections have them staying above 6% through the end of the year. A significant drop would likely bring a wave of competing buyers with it.
I own my current home free and clear. Does the interest rate even matter for me?
Much less than most people assume. If you're using the equity from your current home to pay cash or put down a large down payment on a smaller Westside property, you might finance a relatively modest amount -- or nothing at all. In that case, waiting for a half-point rate drop could cost you more in home price appreciation than you'd ever save on interest.
What's the real difference between downsizing and rightsizing?
Downsizing implies giving something up. Rightsizing means getting into a home that actually fits your life right now -- easier to maintain, right location, right footprint. Many of my clients who rightsize find they gain more than they give up: a walkable neighborhood, a single-story layout, proximity to family or recreation, and cash from their equity freed up for other things.
How does the current Westside inventory affect my options as a buyer?
Colorado Springs inventory is up 19.3% from a year ago, which translates to real options on the Westside. You're not walking into a situation where there are three offers on everything. Homes are sitting for an average of 43 days, which means sellers are more open to negotiating on price, terms, and concessions -- including rate buydown contributions.
How do I know which Westside zip code is the right fit for my next chapter?
It depends on your lifestyle priorities. If you want walkability and character, 80905 (Old Colorado City area) and 80904 (West End / Manitou access) are strong. If you want mountain views and newer construction, 80919 (Rockrimmon) is worth a look. 80906 offers Broadmoor-adjacent prestige. 80907 gives you proximity to the north end of the Westside. I've sold in every one of these zips and can help you think through the tradeoffs for your specific situation.
Let's Run the Numbers Together
If you're thinking about rightsizing on the Westside -- whether that's this summer or six months from now -- the most useful thing I can do is show you the actual math for your situation. No pitch. No pressure. Just a straight conversation about what your current home is worth, what the right next home looks like, and what the numbers say about timing.
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