Buy Now or Wait? The Path to Homeownership | Guiding You Forward
Today’s housing market continues to face inventory shortages, skyrocketing prices and higher-than-desired interest rates. The question is, in this real estate market, is it better to buy now or wait for lower interest rates? Watch this podcast episode to see what our experts think.
The housing market has gone through many changes as of late—from skyrocketing interest rates to inventory shortages. If you have questions about how to navigate your way to a new home, you’ve come to the right place. On this episode of the Mountain America Credit Union Guiding You Forward podcast, we’re joined by Kim Moore, director of mortgage sales, and Matt McRoberts, mortgage sales manager, who share smart financial moves for new homeowners.
In this episode you’ll learn:
• Why waiting to buy could be detrimental to your finances
• Creative ways homeowners are managing higher mortgage payments
As property values and trends continue to change, demand continues to outpace supply. “We still have inventory shortages,” Matt states. “We can’t seem to build enough homes to keep up with the demand.” Many homeowners who bought or refinanced during the COVID-19 pandemic were able to secure great rates, influencing their decision not to sell. “They have a great deal of equity, so there’s no pressure to sell.”
If you’re waiting for interest rates to go back down before you take the leap to homeownership, you may want to opt for a different strategy. Matt explains that delaying a purchase could result in paying higher prices when rates eventually drop, which will cause demand to increase. “You should be prioritizing working toward your down payment and getting into your home,” he advises. Watch the full video for more reasons why buying sooner may be a better option.
Some homebuyers who know they have stretched their budget to get into a home have even devised innovative strategies to offset a large mortgage payment, including renting out a room or the basement. “Homebuyers are getting more creative,” shares Kim. “They’re trying to identify, ‘How can I cut my expenses?’” Watch the full video above to find out more about these tactics and how multi-generational homes play a role.
Bottom line: If buying a home is on your radar at all—even if it’s six months or a year down the road—Matt advises potential homeowners to meet with a mortgage loan officer now. It's a good starting place to understand what you can do today to prepare for buying a home in the future.
