The past year has proven to be unsettled for potential homebuyers that have been asking themselves, “To buy or not to buy?” The transition from the escalated prices of Covid-19 to inflation anxiety has left buyers in a quandary. While current conditions are not completely conducive to buying a home, there are certain advantages that the past few years have provided.
Is now a good time to buy a house?
With mortgage rates being so unpredictable, a home is a long-term investment that will experience many ups-and-downs over the course of your mortgage. While rates are currently high compared to recent history, they won’t stay that way forever and once they drop, the number of buyers will increase causing home prices to rise. Locking in a rate now means you won’t be vulnerable to any further increases. Plus, you can start building equity immediately. If you’re in the market for buying a home, don’t be discouraged. Make the necessary preparations like maintaining a good credit score, saving a solid down payment, and make a commitment to stay in the home for a while. Then move ahead with your plans.
Should I hold out for a lower mortgage rate?
Mortgage rates have always been volatile, and the past year has not been an exception. Rates have swung one whole percentage point in just a few months. You may be holding out on buying a home for a while until rates become steady again. While it’s impossible to predict where rates will be going forward, there are some factors that can help you decide if the time is right for buying a home or not. Check the home values in your neighborhood. If they seem to have dropped over the past six months, it could mean the pattern will continue so holding off on buying a home might be the right decision. If more properties enter the market, chances are buyers will regain the upper hand with bargaining power. Delaying the decision to start the home buying process may seem like an inconvenience but it could also give you the opportunity to build your credit score, pay down any debt or save more for your down payment and closing costs.
What happens if there’s a recession?
Recessions are always risky for buying a home. Jobs could be at risk, affecting your loan potential. The local real estate market could be negatively impacted with fewer homes available, making it more difficult to find a home that you could afford. However, a recession could also mean there will be fewer home buyers making it easier for you to find and afford your dream property.
In the end, the decision of when buying a home is right is up to you. Knowing your financial situation is the most important step to beginning the process, whether the timing is perfect or not. The mortgage loan experts at First Keystone Community Bank can help you through the process of making one of the most significant decisions of your life. Call 570-752-8929 for more information.
