It’s go-time for those who’ve waited patiently for mortgage rates to finally begin to come down. Inflation has cooled a bit, and the Fed has all but promised to continue lowering rates…
There are three main reasons homebuyer hopefuls should buy now:
No one knows for sure if/when rates will rise or fall. Buyers can always refinance later if the rates do decrease.
If rates do fall fast, competition (and prices) for houses will increase.
Start building equity now. Renting is money spent with no equity gain.
There’s a good chance that we will see multiple rate cuts, but no guarantees. A lot of people may decide they’ll wait for the rates to continue dipping. However, waiting is very likely the wrong strategy. Because while what goes up must come down is logical, what’s down can still go back up (or stay down). Inventory is still problematic as well. Those who wait may lose out to those who move. (Pun intended.) If rates decline after the purchase, refinancing is an option.
So, it is logical to purchase now instead of waiting for even lower rates, when competition is likely to be much stiffer. Prices are forecasted to continue to increase despite the current rates now, and with a lowering of rates, they may actually accelerate more (which is also why it doesn’t make sense to wait for your home to appreciate before selling to move to another that better meets your needs, because the home you will buy will have appreciated too… but that is another discussion…).
Owning your home almost always makes more sense than renting, regardless of mortgage rates, in order to build equity. It will serve you well in the long run. The steady pace wins the race.
Laura Harbison, ABR, AHWD, BPOR, BS, CDPE, CRS, DRB, GRI, PSA, RSPS, SRES
Broker/Owner REALTY EXECUTIVES SOUTHERN NEVADA PROPERTIES
License NumbersB.0026537LLCPM.0164922.BKR