Should We Wait for Mortgage Rates to Come Down?

I hear this one almost weekly.

"What if rates drop next year?" 

"Are we making a mistake buying now?" 

"Should we just wait?"

And I get it. Having tasted the interest rates in the 2%, is making buyers want to wait for the rates to come back down.

Interest rates affect monthly payments in a big way. One percentage point could mean hundreds of dollars a month.

But here’s what buyers sometimes forget… when rates drop, competition often rises because more buyers jump back in the market to look for homes. Which means more offers show up and prices can climb.

That doesn’t mean buying now is always right. But it also doesn’t mean waiting is wrong but it does mean that understanding reality is. We will probably never see the two percent mortgage rates again. The reality is rates will probably be between 5% - 7% for a while.

It simply means rates are only one part of the conversation.

We also look at:

• Monthly payment comfort

• Down payment goals

• Job stability

• Inventory options

• Long-term plans

  
  

Because the best rate in the world doesn’t matter… if the timing isn’t right for your life or your pocketbook.