Home prices keep rising as you wait for rates to drop, but buying now lets you lock in today’s price and refinance later when rates finally fall.
Are high interest rates making you feel like it’s not the right time to buy? If the thought “I’ll wait until rates come down” has crossed your mind, I want to walk you through three key points that might help shift that mindset.
1. Waiting for lower rates could end up costing you more. Since COVID, people have been holding off and waiting for a market crash. However, prices haven’t dropped and only continued to rise. While appreciation has slowed to about 3% a year, that still means home values are increasing, just at a steadier pace.
If you’ve been staying on the sidelines hoping for a better interest rate, keep in mind that the cost of the home itself may keep rising. Over time, that could easily outweigh any potential savings from a lower rate.
Rates can change over time, but home prices are likely to keep rising.
2. You’re not locked into today’s rate forever. The benefit of buying now is that you can always refinance later. If you purchase at today’s rate and rates drop in the future, you’ll have that option. What matters most is locking in the price of the home you want now. Rates can change over time, but home prices are likely to keep rising.
3. Renting remains expensive and doesn’t build your equity. If you’re not buying a home, you are most likely renting, unless you happen to be living with family. Rental prices remain high, and although they have leveled off somewhat this spring, they haven’t decreased significantly. Continuing to rent means you are essentially paying your landlord’s mortgage instead of building equity for yourself.
If you’ve got any specific questions, I’m happy to talk through them. Whether it makes more sense to rent or buy right now really depends on your personal goals and situation. Feel free to give me a call at (843) 251-2693 or send an email to greg@gregsisson.com. Looking forward to chatting!
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