Many homebuyers are grappling with the same question: should I wait for rates to drop or dive into the market now?
With rates fluctuating, the answer might surprise you: Now is the time to buy! Don’t let fear of rising rates or hope for lower ones keep you from securing the home you’ve been dreaming of.
Here’s Why:
1️⃣ Trying to Time the Market is Risky
While it’s tempting to wait for lower rates, the reality is more complex. Mortgage rates tend to follow the yield on 10-year Treasury bonds (in addition to other factors) rather than directly reflecting Fed rate cuts. Recently, these yields have risen, pushing mortgage rates higher. But don’t forget—today’s mortgage rates are still more than a full point lower than they were a year ago!
2️⃣ You Can Always Refinance Later
Mortgage rates move with factors beyond the Fed’s influence, such as 10-year Treasury bond yields. If rates fall after you buy, refinancing gives you the chance to lock in a lower rate. However, if rates rise, waiting could make that perfect home less affordable.
3️⃣ Home Prices Tend to Rise Over Time
Even buyers who purchased when rates were higher have seen their investments grow as home values appreciate. The median home price has risen almost 50% over the last five years and experts predict that prices will continue to increase over the next five years—meaning the sooner you buy, the more equity you could build!
4️⃣ Inventory Is Up!
The market is currently offering buyers a unique opportunity: more homes and less competition. Inventory levels are up 6.4% from last month and 33.6% from last year, giving you more choices and negotiating power than before.
Ready to Make Your Move?
With more homes hitting the market and prices likely to climb, now is the time to turn your dream into reality. And at Rush Residential, we have the expertise, resources, and trusted partners to support your homebuying journey every step of the way!
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Looking for an Agent? Reach out to our team—we’re here to help!
