With interest rates at their highest levels since 2000 and affordability lowest since 1984, it’s a fair question to ask whether it’s a good time to buy a house.
To answer this question, it’s important to consider both the past and the future.
Looking back:
Compared to last year, it is not a good time to buy a house. Interest rates and home prices are both higher today.
Looking ahead:
However, interest rates are expected to drop in the coming year. This means that if you buy a house now, you will be able refinance later at a lower rate.
Additionally, there is less competition in the housing market today than there was last year. This gives buyers more negotiating power.
Of course, there is always the risk that interest rates could go up instead of down. However, if you are confident in your ability to afford your monthly mortgage payments, then buying a house now could be a good way to lock in a lower price and build equity.
What should you do?
Ultimately, the decision of whether or not to buy a house is a personal one. There is no right or wrong answer.
Here are some additional things to consider when making your decision:
- How long do you plan to live in the house? If you plan to stay for at least five years, then buying now could be a good investment, even if interest rates go up in the short term.
- How much can you afford to put down? A larger down payment will lower your monthly mortgage payments and give you more equity in the home.
- How is the current job market? If you are confident in your ability to keep your job, then you may be more comfortable buying a house now.
No matter what you decide, it’s important to do your research and make informed decisions.
Are you looking in the past or looking toward the future?
