Buying a home now—even with current high interest rates—could actually be a better long-term strategy than waiting for rates to drop. Now everyone’s situation is different and every market is different…..but here are a few reasons I believe acting, instead of waiting, is better:
- Rate Reductions Could Increase Demand: If mortgage rates decline, the market will likely see a surge in demand as more buyers try to capitalize on lower borrowing costs. This influx could lead to more bidding wars and higher home prices, which can offset any savings from a lower rate. Homebuyers today might benefit from lower competition and more negotiating power than they would if rates were to fall and spark a rush back into the market (The Mortgage ReportsWUNC).
- Build Equity Now and Refinance Later: The “marry the house, date the rate” philosophy is growing in popularity. This approach suggests that buyers who secure a home now can refinance if rates drop in the future, taking advantage of both current home price appreciation and eventual lower payments. Building equity from day one is a key benefit, as home equity has historically contributed significantly to individual wealth growth in the U.S.
(The Mortgage Reports). - Market Trends and Fed Policy: While some anticipated that the Federal Reserve would begin cutting rates in late 2023, recent economic data—including steady job growth and robust consumer spending—has kept inflation and rates higher than expected. Many experts now suggest that substantial rate cuts may not come for some time. Waiting for rates to drop could mean staying out of the market longer than anticipated, missing out on years of potential equity growth.
(WUNC)
Investing now in a property with the current rates can position buyers to take advantage of both eventual refinancing opportunities and the wealth-building benefits of real estate.
If you’re thinking about purchasing a home or investment property – or selling your currrent home or investment property – and would like to talk through your options, please reach out! Email me at Happyhomescoltd@gmail.com & let’s create a plan!