One of the things we often hear from prospective buyers is, “Mortgage rates are high, so I’m waiting for them to come down before I buy”. While in theory this is a good idea, the reality is there is no real way to forecast when they will come down, and how much they will come down. Sure there is the Case-Schiller Home Price Index, and plenty of news forecasting what may or may not happen to mortgage rates, but the fact is there are no guarantees. After all, there is just as much, and (I submit) more information out there, regarding the stock market, and people lost thousands, if not millions trying to time the same.
I raise this, because timing where mortgage rates will be should never be the primary factor in purchasing a home. Sure it maybe a consideration, but it should not be the primary factor. What should be the primary factors are, do you love the home and can you afford it. If only one (1) of these factors works for you, than you probably should not buy the home.
Additionally, while mortgage rates are higher than they were last year, historically they are still very low. In addition, while there are no guarantees, history has shown to some extent that there is a correlative relationship between mortgage rates and price. Specifically, in many instances when rates have increased, prices have decreased and vice versa. (Again there are no guarantees this will happen). The point is the mortgage rate by itself should not drive your decision as to when to buy a house that is right for you, especially if you can afford and love the home.
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