Waiting on lower mortgage interest rates?

Bottom Line Up Front (BLUF): I truly hope none of you are still waiting on mortgage interest rates to come down, for a housing recovery to occur. Seems that we are far gone past that wish, and there would be multiple things that have to fall in line, for that to even be a possibility. We would of course need interest rates to come back down to a digestible level, as well as the total inventory of homes to increase to alleviate the pressure of home prices going up.

Let us focus on the interest rates though, since that has been a hot topic for a couple years now.  Current 30-year fixed mortgage rate is sitting just about 7%.  How much do we really want that to tumble… 5%? …4%? Do future home buyers win, if that rate drops even lower than that? I’d argue that they do not. Main reason is that if rates plunge the way that we think we want them too, then the current demands on current homes will immediately rise and cause home prices to soar! So yeah, in 2023 you could get that $200k house at 7%.... or you can wait and get it in 2024 for $300k at 4.5%. The math on that, says buy the house now.

My point is and its extremely cliché; if you have the finances and are in a situation to buy now, do not wait.  No one knows what the market is going to do, and even the best analysts are likely only predicting accurately around 60% of the time. Do your own research and math…. Make the investment, take the risk, celebrate later!