Why Waiting to Buy a Home Could Cost You
In today's housing market, many potential buyers are hesitant due to rising mortgage rates and increasing home prices. However, industry experts suggest that delaying your home purchase might not be the best strategy. Barbara Corcoran, founder of The Corcoran Group and star of "Shark Tank," emphasizes that despite higher rates, now is the time to buy. She points out that with many homeowners holding onto low-interest mortgages, housing inventory remains tight, leading to continued price increases. By acting now, buyers can avoid higher costs in the future.
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Understanding the Current Market Dynamics
The average rate for a 30-year fixed mortgage has seen a slight uptick, reaching 6.67% for the week ending March 20, 2025. While this is higher than previous years, it's important to note that home prices are still on the rise, albeit at a slower pace. This trend suggests that waiting for rates to decrease may not result in overall savings, as home prices may continue to appreciate.?
The Risk of Waiting for Lower Rates
Holding off on purchasing in hopes of lower mortgage rates can be a gamble. Even if rates decrease slightly, the concurrent rise in home prices could negate any potential savings. Additionally, with limited inventory due to many homeowners retaining their low-rate mortgages, finding the right property could become more challenging over time.?
Advantages of Acting Now
Building Equity Sooner: Purchasing a home now allows you to start building equity immediately, positioning you to benefit from any future appreciation.?
Potential for Refinancing: Should mortgage rates decrease in the future, refinancing could offer an opportunity to secure a lower rate while retaining the benefits of earlier homeownership.?
Avoiding Increased Competition: As more buyers enter the market anticipating lower rates, competition could intensify, potentially driving prices higher and reducing your negotiating power.
posted by Marni Wolf @ April 08, 2025
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