When the housing market is slow, there are more houses for sale and sellers may reduce the price to lure buyers in. Some think it is a great time to buy, others prefer to wait to see if prices will drop even lower. One thing for certain, interest rates are going up and now it is a good time to lock in rates before they rise again.
In particular, first- time buyers want to lock in the rate before it goes even higher. It totally makes sense. If we anticipate for interest rates to rise, there is an incentive for home buyers to lock in today’s interest rates.
Others prefer to rent as a cheaper alternative, however, it is not the case. Buying a home creates equity, whereas renting only puts money in someone else’s pocket. Plus as a homeowner, you can benefit from tax breaks for owning a home. If you think that you should wait for prices to go down, and continue to rent. You are wrong. Once the money is gone, it is gone forever. No equity, no tax breaks!
Home purchase decisions are less financially driven than personal preference driven. No matter if the interest rate goes up or down, a fixed-rate mortgage protects buyers from market changes. Furthermore, renting is inconsistent and unreliable since it provides zero benefits.
Owning a home is a still a foundation of the American dream and a foundation for building wealth. Do your homework. Consult with a mortgage lender to see what you can qualify for. In addition, contact our team for market analysis and see it for yourself why waiting will cost you more.
-Aida Younis Team
Sugar Land & Fort Bend County’s #1 Real Estate Team.