Well, now it’s more complicated. There are conflicting reports about how rates will fluctuate but for the most part with rising inflation worldwide and here, the general consensus is rates may rise again this year as the fall progresses. In fact, they may not drop again until next year. No one knows for sure but the best plan of action is always to prepare to buy so when the time is right, your loan profile is ideal. This will give you the lowest rate possible and save you thousands.

In times like these it’s best to look at your finances and see what makes financial sense. If your mortgage is lower than current averages, can you afford that jump? Looking at inventory now, how much do you think you can afford? If what you are looking for is about $650k now, know the mortgage is over $4k if you only have an average 3-5% down; BUT, if you have tons of equity in your home you can subtract that amount and calculate the amount of sale price to determine how much you’d actually need to finance. So if you have $200k equity, can you readily afford a mortgage on $450k? If so, then yes, even with rates over 6%, it’s worth buying if you are able to get a home that better suits your family’s future. Prices are dropping a little again so you will automatically have equity in the new house and over the years you might have a total of what you paid in equity as appreciation goes up by the time you sell again.

In this market, buying and selling comes down to necessity. If you don’t need to move or really want to this year, then waiting is fine and you can see how the rates move the rest of the year. If they lower, reconsider again, and if they rise maybe wait until next year. Your home will hold most of its equity and eventually home prices will steadily increase again at the next rate drop; even if it’s small. Keep the property well maintained and updated reasonably and of course your finances and credit in good shape. When the time is right, you’ll be ready. If it’s not right, there is no benefit to rushing the decision and waiting is probably a sound choice.