In today's market, potential buyers may be facing uncertainties and wondering: Is now a good time to buy? What homeowners need to know is that high rates are the new normal. Though it’s likely rates will drop from where they are today, experts are saying the days of 3% interest rates are unlikely to return. Furthermore, and perhaps most notably, when rates do drop, it will be pandemonium in the housing market all over again. Barbra Corcoran says it best:
“The minute rates drop, everyone’s going to jump back into the market. When rates go down, home prices will go back up by 10% or even 15%... So don’t get out of the market. This is the very best time.”
Let’s explore a few other reasons buying now is the best bet for your financial future.
Escape Rising Rental Payments and Lock in Your Cost of Living: Renters often find themselves trapped in an endless cycle of rising rental costs, making it difficult to achieve financial stability and long-term savings goals. Owning a home, on the other hand, allows you to lock in your cost of living, so you don’t have to worry about the unpredictable rent increases and provide you with greater control over your housing expenses.
Start Building Your Wealth: Homeownership is a powerful wealth-building tool. With each mortgage payment, you're investing in your future. You're building equity in your home, creating a valuable asset that can be leveraged for future financial goals. This equity can be used to fund home renovations, education expenses, or retirement planning down the road. Buyers who wait to buy are missing out on building equity today.
Earlier this year a study conducted by the National Realtor Association found that homeowner wealth is 40 times higher than renters. Chief Economist Lawrence Yun shares: “A monthly mortgage payment is often considered a forced savings account that helps homeowners build a net worth about 40 times higher than that of a renter."
Take Advantage of Builder Concessions for a Favorable Rate: In the current market, sellers are often more willing to negotiate on price and offer concessions. This presents an opportunity for savvy homebuyers to secure a favorable deal, potentially saving thousands of dollars on their purchase. You have the option of always refinancing and locking in a lower interest rate, however there is no guarantee how low rates will get when they do drop. By taking advantage of our home loan interest rate buy down, you could achieve a rate as low as 5.99% today. Take advantage of builder concessions offered today, you may be positioning yourself in a more favorable way than if you wait for rates to drop.
The advantage of homeownership is still strong. By taking advantage of today’s market, buyers can avoid competition, grow their wealth, and lock in financial security for their family.