Should You Wait for Interest To Drop to Purchase a Harford County Home?
Buying a home in the last few years in Harford County has not come without challenges. One of the largest challenges buyers feel they face is an increase in mortgage interest rates. Mortgage rates have remained much higher than many experts predicted for this time of year. Should a Harford County homebuyer wait until interest rates drop to purchase a home?
If you talk to a real estate professional most often the answer is going to be no. When it comes to if you are truly ready to buy a home there are several factors to consider beyond where the current mortgage interest rate lies.
The reason you are purchasing a home
The first thing to consider about the proper time for you to buy a home is why you are buying a home. Many people choose to purchase a home for several different reasons. There are many that make sense to take a leap into the financial commitment and some are worth holding off.
If you are currently shopping for a Harford County home and find the one that meets your needs with an affordable budget you don't want to miss out on purchasing the home while it is still for sale.
No one owns an actual crystal ball
There is no exact formula for calculating where mortgage interest rates will end up. If following the predicted news of mortgage interest rates over the last year and a half has taught us anything it is that no one can precisely tell us where mortgage rates are headed with 100% certainty. There were many experts who thought they would see interest rates in the mid-5% range by the end of 2023. Yet we are currently hovering around the 7% mark. Anyone who is waiting to purchase a Harford County home until the end of 2023 is probably a bit disappointed in counting on mortgage rates being at 5% right now. The truth is if you can afford to purchase a home that you want currently then you should purchase now even if you are not in favor of current interest rates.
There's no guarantee on home prices
Some forecast that home prices will decrease in many areas across the country over the next year. While this may be true, prices in the most desirable locations have almost stayed the same and in some areas have continued to increase steadily. When you are in a good position to purchase a home you want to purchase it now before the value of the home increases and the list price goes with it.
What is the best way to work around the current mortgage rates?
The best way to determine if you are ready to purchase a home is to sit down and write out what you truly need in your next housing and go over your finances with a fine-toothed comb to determine how much you can comfortably and responsibly afford to pay.
It is always a good rule of thumb to not pay more than 30% of your income on your housing cost. Finding that affordable ideal budget will help you to determine if you are comfortably able to purchase a home that you truly want and need. If you find that the Harford County homes you are looking for are just out of your reach financially then this would be a good reason to wait to purchase a home not because of where interest rates are at.
If you are searching for a home in Harford County I can help. Contact me anytime with any Harford County real estate needs. I am experienced in both selling and helping clients find ideal homes that they love.