Putting Off Buying a Home Comes at a Price

Buy now, or wait until rates decrease? That’s the question prospective homeowners are struggling to answer in today’s housing market.

 

A new report found that nearly two thirds of potential buyers are holding back on home purchases, with many planning to wait for lower rates. 

 

And while no one knows for sure when the housing market will improve, not everyone is waiting until it does.

 

Recent U.S. Consumer Stats and Sentiments 

 

The Real Financial Progress Index from BMO Financial Group found that 64% of Americans plan to avoid entering the housing market until mortgage rates fall. 

 

When they’re ready to buy, 68% of U.S. consumers plan to take out a mortgage to finance their new home purchase.

 

The Cost of Waiting to Buy a Home

 

Homeownership has historically been one of the best ways to build equity and achieve long-term financial gains. 

 

While mortgage rates are relatively high when compared to the past few years, we can’t speak about the housing market without addressing inventory. 

 

Inventory levels are historically low, and when interest rates eventually decrease, everyone on the sidelines will flood the market, elevating prices even further. 

 

Because of this, waiting may not be the best strategy. We recommend that borrowers take advantage of today’s prices with the plan to refinance in the future. 

 

Closing Thoughts

 

Deciding whether or not you should buy a home right now should not depend on national headlines. At the end of the day, your needs matter more than today’s mortgage rates.

 

And while purchasing a home may feel overwhelming, it’s important to recognize that waiting too long can present challenges as well. Review your finances in detail, and talk with your trusted loan officer to determine the best timing and strategy for you today.