If you live in a market where it’s cheaper to buy than rent, it’s always a good idea to buy. Fixed housing costs are awesome in an inflationary environment. When rates eventually drop you can refi and you’ll be sitting pretty.
Otherwise, I’m not sure that prices have corrected enough to accommodate the current interest rates. You really have to track new listings, the average days on market, and sold vs listing price to see if your local market has bottomed out or not. Rates haven’t been ~7% in a long time and that’s going to really increase your mortgage payment vs a few years ago.
That is what I am hoping for but are the rates supposed to drop soon at all? Where I am at, renting is only slightly cheaper than buying which makes no sense to me but here we are.
Our mortgage would be ridiculous if we did buy but its something we can do for the time being. Not sure if that is the smartest thing to do or not.
I doubt rates are going to drop anytime soon. The current administration's policies want inflation. That means the Fed has to raise interest rates to try and dry up the money in circulation. The fed is signaling slower rate increases but who knows what they will actually end up doing. They can't identify the source of inflation or even see a recession staring them in the face. But as inflation goes up, so will rents. If the cost is similar you might want to lock in a fixed housing payment instead of being vulnerable to rent increases. You should probably be having this conversation with a trusted real estate friend or a financial advisor.
No forsure, I think what I am looking for here is for someone to tell me that what I am considering doing is a good idea or a completely awful one.
I appreciate you chiming in and I have a lot to think about. I love this community and people like you remind me that I am never alone. Thank you again and God bless you pede.
Is it worth trying to buy a home at this time?
If you live in a market where it’s cheaper to buy than rent, it’s always a good idea to buy. Fixed housing costs are awesome in an inflationary environment. When rates eventually drop you can refi and you’ll be sitting pretty.
Otherwise, I’m not sure that prices have corrected enough to accommodate the current interest rates. You really have to track new listings, the average days on market, and sold vs listing price to see if your local market has bottomed out or not. Rates haven’t been ~7% in a long time and that’s going to really increase your mortgage payment vs a few years ago.
That is what I am hoping for but are the rates supposed to drop soon at all? Where I am at, renting is only slightly cheaper than buying which makes no sense to me but here we are.
Our mortgage would be ridiculous if we did buy but its something we can do for the time being. Not sure if that is the smartest thing to do or not.
I doubt rates are going to drop anytime soon. The current administration's policies want inflation. That means the Fed has to raise interest rates to try and dry up the money in circulation. The fed is signaling slower rate increases but who knows what they will actually end up doing. They can't identify the source of inflation or even see a recession staring them in the face. But as inflation goes up, so will rents. If the cost is similar you might want to lock in a fixed housing payment instead of being vulnerable to rent increases. You should probably be having this conversation with a trusted real estate friend or a financial advisor.
No forsure, I think what I am looking for here is for someone to tell me that what I am considering doing is a good idea or a completely awful one.
I appreciate you chiming in and I have a lot to think about. I love this community and people like you remind me that I am never alone. Thank you again and God bless you pede.