Why Wait for Mortgage Rates to Come Down?

Today’s real estate market is so unpredictable that even the most knowledgeable and respected experts in the industry admit, they’re not sure what’s going to happen next. If anyone claims to know whether housing prices will continue to decline, or whether interest rates will rise, they are just blowing smoke. Our current housing market and mortgage industry are each a roller coaster ride with no track.

There have been a number of so called online “experts” advising potential home buyers to wait for mortgage rates to come back down before purchasing a home that they are currently considering. Waiting for mortgage rates to come back down is bad advice and should not be followed for these reasons.

1) The house might sell. If the house is right for you and your family, or especially if the house is your dream house and falls within your budget, it would be a shame to lose out on the chance to buy it. There is absolutely no guarantee that interest rates will come back down anytime soon.

2) The cost of the home could rise. It is very possible that the real estate market could rebound and/or self correct in the near future. If this happens, housing prices will rise and could rise significantly. If this happens, not only could the cost of the house you’re considering rise, interest rates are likely to rise as well.

3) Refinance options. What is the harm in buying the home and securing the lowest fixed rate of interest possible now, reserving the option to refinance later if interest rates fall? Sure, there will be fees involved, but it would still make financial sense to do it and at least you wouldn’t lose out on the home you want.