Let's crunch some numbers: as of August 8, 2023, the average 30-year mortgage interest rate is hanging out at 7.06%, and if you're eyeing a 15-year mortgage, it sitting at around 6.42%. Now, considering rates from 2 years ago – the current digits might not look quite as tempting.
But there's more to the story than rates when it comes to buying real estate! Each buyer has their own financial situation. So even if rates don't budge significantly lower, it doesn't mean it's a bad time to buy.
Here are three reasons why buying a home now might still be a great idea:
Interest rate hikes affect the real estate market differently depending on where you are. In some places, home values might have dipped a bit, but in others, they've stayed the same or even gone up. If you're lucky enough to be in an area where prices have risen, buying a new home now could be a smart move.
Why? Well, when you sell your current home later, you might make more money than ever before! That means you'll have extra cash to bid on a fancier home than you thought possible.
Owning a home comes with a hidden gem called the mortgage interest tax deduction. That's a fancy way of saying that homeowners get to save money on their taxes! When you file your taxes, you can deduct a good chunk of your mortgage interest, which means more money in your pocket.
It might not be the main reason to buy a home, but it sure helps make the higher interest rates more manageable. Crunch some numbers and see how it works for you!
Sure, interest rates are a bit high right now, but let's think long-term. Buying real estate is usually a smart move because, over time, home values tend to rise. Even when considering inflation, today's home values are much higher than they were in the past.
So, if you're in it for the long haul, real estate can be a fantastic investment in your financial future. Renting might seem easier now, but buying a home can pay off big time down the road.
Ultimately, whether now is the best time to buy a home depends on your unique circumstances. We all have different financial situations and goals, so what works for one person might not be ideal for another.
Take a close look at your options, weigh the advantages, and consult with us, your trusted mortgage professionals, to help you make the best decision for your future.
