There’s an interesting issue that keeps coming up in different real estate media. The idea that interest rates shouldn’t be the only decision factor in buying a home. The narrowness of this statement is that it blends into all the other decision factors, especially the primary factor for most homebuyers: monthly payments.
When you add in the mortgage rate increases of recent months with the steady state of home prices (and increases in some areas) the combination leads to a change for home buyer’s expectations. The amount of house, style of home, and location are in some cases dramatically different than they were just a year ago. Anyone who looked at the market last year and was ready to buy, but decided to wait until prices, or rates went down are now sitting there in shock.
Where to go from here if you’re looking for a home? If you are in need of a house, then the best thing to do is find the best house that you can afford at this time. I know this is what we faced when buying our home last year. The style, location, and everything else changed from where we had been looking the previous year till the time we were able to buy. We were blessed to be able to check some of the wants on our list, but not all. The difference in mortgage rates at the time we bought combined with price was definitely a significant factor in our decision making.
So where does this leave the homebuyer in the current market? My feelings are that if you need a place to live and can afford a house that you like, or can at least check some of the boxes on your list, then it’s not a bad idea to buy. Buying a house shouldn’t be entered into lightly and like any big purchase, should be looked at as a business decision. This is probably the part that confounds most buyers as they let emotion drive their decision making.
Keep looking for the house of your dreams that fits your budget and make sure that you are comfortable with the purchase and understand what you’re diving into. This is where a good Real Estate Agent can be of the most assistance. Especially one who works to make sure that they are providing the best advice and options in this market.