Why Waiting for Lower Rates Could Cost You More

Why Waiting for Lower Rates Could Cost You More

Why Waiting for Interest Rates to Drop Might Cost You More

 
Navigating the post-pandemic housing market feels like riding a roller coaster, doesn’t it? Sky-high mortgage rates and home prices have made it a wild ride for both buyers and sellers. Many homeowners are holding onto their properties, causing a shortage in housing supply and driving prices up even further. And with buyer demand through the roof, we’re in one of the most expensive housing markets we’ve ever seen.
 
Now, I know what some of you are thinking: “Maybe I should wait for interest rates to drop before jumping into the market.” But hold on—let’s unpack that a bit.
 
What Barbara Corcoran Says
 
Real estate mogul Barbara Corcoran recently shed some light on this issue, and her perspective is eye-opening. According to Forbes, Corcoran explained that waiting for interest rates to drop might not save you money. In fact, you could end up spending more on a home in the long run.
 
Home Prices and Interest Rates
 
Here’s the deal: As of May 9, 2024, the average mortgage interest rate for a 30-year fixed-rate mortgage in the U.S. was around 7.09%, according to the Federal Reserve Bank of St. Louis. Barbara Corcoran pointed out that if rates were to drop to around 6%, home prices could skyrocket. She mentioned on Fox Business that a mere one-point drop could trigger a major surge in home prices—potentially up by another 8% or 10%.
 
Think about it. If everyone waits for rates to drop, and they do, the flood of buyers entering the market will push prices even higher. You might find yourself paying significantly more for the same house you could buy today.
 
Should You Buy Now?
 
Buying a home is one of the biggest financial decisions you’ll ever make. It’s crucial to be financially prepared. Here are some questions to ask yourself before diving in:
 
  • Do I have 6-9 months’ worth of cash savings for emergencies?
  • Can I afford a mortgage without spending more than 30% of my monthly income?
  • Am I prepared to handle future home repairs and maintenance costs?
 
If you answered yes to all these questions and have the cash for a down payment, it might be wise to act now before prices climb even higher.
 
My Take
 
As someone who’s deeply involved in the real estate market here in Frisco, I’ve seen firsthand how quickly things can change. The market moves fast, and opportunities can slip through your fingers if you’re not ready to seize them. If you’re considering buying a home, I believe now is the time to make a move. Waiting could mean paying more in the long run.
 
Remember, I’m here to help you navigate this complex market. Whether you’re buying or selling, I’m committed to providing you with the best advice and support every step of the way. Feel free to reach out if you have any questions or need assistance with your real estate needs.
 

Stay informed, stay positive, and as always, if you need any guidance, I’m here to help. Let’s navigate this together!

Johnny Apple

469.569.2007

[email protected]

WORK WITH JOHNNY

At the heart of my drive are my three boys, who constantly inspire me with their zest for life and love. They motivate me to pursue excellence in all my professional endeavors. As a Real Estate Agent, I’m passionate about not just facilitating transactions, but in helping people discover their ideal home, fostering lasting connections along the way.

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