LIES YOU MIGHT BE TOLD BY SOME EXPERTS

Could they all be right and rates will dip below 5% again? Possibly but the question is really when? Living in the hope it will be in the next couple years can be a foolish and devastating move if that’s your motivation for purchasing a home now. Maybe it doesn’t really matter if you are already dead set on buying; BUT, what if you are not because you’re on the fence about your finances, if this is really where you want to grow your career and family, or you’d rather wait until your credit and down payment savings are higher to offset the 6.5% you’re being offered (or 8% if it’s a no down payment assistance program)then it could in fact be best to wait until the follow year where it might actually be cheaper to purchase at a lower interest rate and market cost for you. In that case, the argument of a potential drop in rates may not be best because there’s an equal chance they won’t. If they do and you waited, you lose nothing because then you can buy at those lowered rates with the savings and credit you worked on for a few more months. However, if you let it persuade you before you were totally ready and the rates in fact DO NOT lower, you put yourself in a situation you were never comfortable entirely to begin with and if anything else in life happens, more inflation and gas prices, health issues, job cutbacks or whatever, you might be in a position where buying too soon is now causing financial burdens. That’s where this advice can hinder you. If you’re worried rates will rise and would rather buy and you are comfortable buying now then it makes sense. If the rates lower, great, refinance, and save money; BUT if you’re not ready 100% now and not even getting the rates in the 5s right now because of credit, DTI, down payment, etc sometimes waiting saves; especially if the inventory isn’t as good also. Some sellers are holding back and sometimes a year can change people’s tune waiting to see if a recession hit, prices go too low, they do need to move after all, etc.

So buy because it’s right in time and the home is right but don’t panic buy because you think you can get a lower rate next year. No one knows.