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Buy NOW – NOT wait on rates
Are you really wanting or needing to move to better fit your family’s needs but you keep telling yourself, “I’m going to wait until the interest rates go down.”?
Are you crammed into a house way too small for your growing family but “my interest rate is too good to leave”?
Did you inherit a house from a relative and you’re telling yourself to hold onto it because “nobody will buy it with interest rates the way they are right now”?
Do you need to downsize because the house and lawn are too much to maintain as an empty nester, but you are worried about your house payment now that interest rates are “higher than yours”?
I’ve heard all of these AND some! It’s a common concern for buyers watching the economy and hoping to time the market just right.
But here’s the TRUTH: trying to predict rate changes could cost you more in the long run. Here are 5 reasons why!
1. You Can Refinance Later—But You Can’t Go Back in Time on Home Prices
Home prices historically trend upward because houses appreciate in value. If you wait for a lower rate to MAYBE come along one day, that means you will pay more for the same house later. The interest rate may go down 1-2% but the price of the house went up $100,000 or more which means your payment will be even higher than if you bought it when you needed it and wanted to buy it.
You can get your dream home now and then refinance your mortgage if the interest rates drop. Time in the market beats timing the market.
Remember – You can’t undo future price increases, but you can always revisit your interest rate when they decrease.
2. Lower Rates Usually Mean More Buyer Competition
When the interest rates drop, demand will skyrocket. This means more buyers will be shopping around and bidding wars and multiple offers will come into play. This will increase the price of the house even more than appreciation alone.
If you act now, it will help you avoid overpaying later when the market is going crazy.
3. You’re Buying a Home, Not a Rate
A home is about lifestyle, stability, and building your future—not just the numbers. Yes, you need to ensure that you can afford the house. You don’t want to live beyond your means, but a house is so much more than the interest rate. It’s an investment, yes. BUT – it should be the place you go home to for joy, peace, rest, fun, togetherness, and gratitude.
Waiting to buy your dream home could delay life milestones: family planning, job location, or personal goals. Is it worth the extra 1-2% of interest rate difference?
4. Trying to Time the Market Rarely Works
Even economists can’t predict rate shifts with certainty. A lot of factors go into play and the future cannot be predicted with absolute certainty. Why do you want to wait on loving where you live when nobody can truly predict the market?
Buying when you’re financially ready is smarter than chasing an unpredictable future. I can help you find a mortgage provider that will sit down with you and help you determine what you can financially afford in today’s market. This is the best way to plan for your purchase.
5. Interest Rates Are Just One Piece of the Puzzle
Interest rates are not the only factor in your monthly payment. Your monthly payments depend on rate and price and taxes and insurance.
A slightly higher rate on a lower-priced home could still mean a lower monthly payment. Instead of focusing on just the rate, it’s time to meet with an expert to walk you through what you can afford and what your monthly payments will be for your dream home. Then, you can make the best decision for you and your family.
To summarize
Relying solely on interest rates and their fluctuation will never product the best outcome. The right home at the right time beats the perfect rate on the wrong property. It’s time to rethink the financial side of the home buying process when it comes to interest rates. Think of it as locking in your lifestyle and not just a loan.
If you want to talk more about this, I’d be happy to discuss this with you! Just reach out, and we will go from there! If you don’t believe me, just listen to Dave Ramsey talk about it, too.
