Mortgage rates are plummeting. Should homebuyers jump into the market?

Homebuyers could realize thousands in gains but the approach carries risks, experts said.

Mortgage rates have plummeted in recent weeks, boosting the prospects of homebuyers previously stifled by high borrowing costs.

Many forecasters predict mortgage rates will drop further, however, since the Federal Reserve expects to cut its benchmark interest rate this year.

Those circumstances pose a quandary for buyers: Jump into a newly attractive market that promises thousands of dollars in gains or wait for the possibility of an even more favorable one.

Homebuyers would be well-served by a leap into the current market, since the movement of mortgage rates often proves difficult to predict and purchasers reserve the ability to refinance if rates continue to fall, experts told ABC News.

But that approach does carry risks, some experts added, noting the loss of additional time to pad one's finances as well as the possibility of a decline in home value after the purchase if the market worsens.