Why You May Not Want to Wait to Buy

Dated: February 28 2023

Views: 319

Why You May Not Want to Wait to Buy

 

Recent fluctuation in interest rates, coupled with inflation, has created some uncertainty among home buyers.  Here are some key reasons you should consider buying now instead of holding off on your home search…

 

  1. Stability - Whether you own or rent, housing is easily one of the largest monthly budget expenses.  So if you share in the feeling of uncertainty that some buyers are feeling, buying a home with a fixed rate mortgage actually safeguards your housing budget against rising rent rates.

 

  1. Reprieve in competition - Sellers have had the upper-hand for several years, and some still do.  But, while there are still bidding wars and multiple offer situations, the competition has become much less fierce, creating a path for a less stressful decision making process when buying, and sometimes leading to more potential to negotiate.

 

  1. Options to refinance - A little reprieve in competition opens the door for potentially better pricing and contract terms which could actually make up for the change in interest rates.  That being said, some lenders also offer options to “buy down” your interest rate, and may even offer incentives or discounted fees to refinance later.

 

  1. Mortgages may become harder to get - The verdict is still out on whether we are actually in a recession, but one thing is certain… Recessions create a tightening of lending criteria making it more difficult to obtain a mortgage.  We are already seeing changes at the government level resulting in fee increases for government backed loans for some borrowers.


The uncertainty that some have been feeling has led to circulation of misconceptions and misinformation across social media platforms. We hear it all the time… “don’t buy until the market crashes”... which is terrible advice by the way!  Buying a home is still statistically one of the safest (if not the safest), and oftentimes most profitable, investment many will make in their lifetime. It’s important to remember to be selective in what information you take at face value.  Very few people are experts in real estate, so be sure to select an experienced and trusted real estate agent and loan officer, and rely on your team of professionals to give you personalized professional guidance to make sure you are making decisions that are tailored to your goals.

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