Is it worth holding out for even lower mortgage rates before purchasing a home to save money? Maybe not, considering the current real estate landscape.
While mortgage rates are dropping, the supply of available homes remains limited. According to experts, this imbalance is expected to attract more buyers, intensifying competition and potentially causing home prices to rise a little.
Consider this scenario, if you buy a $650,000 house now with a 20% down payment and a 30-year mortgage at 6.75%, your monthly payment is around $3,372. Even if rates drop to 6.25% and the house appreciates by 5% to $682,500, your monthly payment only goes down by $10.00.
With the decreasing rates and the anticipated rise in buyer competition, Spring '24 is the opportune time to enter the market. Waiting may not get you the outcome you want with the current market conditions. So, if you're contemplating a home purchase, waiting might not be the best plan. As always, “Be Wise About the Market” so you don’t miss out on great opportunities.
