The sky is falling, the sky is falling. This is what many would have you believe when it comes to rising interest rates while looking to purchase a new home. Here are a few things to consider instead of the “woe is me” attitude and why now is the time to buy your new home.
Date your rate but marry your home
You don’t want to pass up the chance to buy your dream home just because rates are higher today. You are always able to refinance your home later for a lower rate once it is available. The current economy will change, and this may be the best opportunity to find your new home.
Higher rates mean more inventory in the housing market
We have had lower rates for the past several years. If you were in the market during that period, you spent time battling to get offers in only to find that you were outbid, and many times lost out to someone offering thousands over and above the listed sales price. In many cases, there were 10-20 plus offers on the same home. Now that more homes are available to buy and less people are interested in buying, the odds of finding your dream home increase.
The value of your new home will likely increase in value over the next 12 months
HousingIQ recently reported that the housing industry in Oklahoma has underperformed in comparison to the rest of the country. It shows that the current local economic conditions support an estimated 19.4% increase in house prices over the next twelve months.
Florida’s housing market is outperforming the overall U.S. market. The HousingIQ report based on data from July, 2022, stated that economic conditions support an estimated 29.7% increase in house prices over the next twelve months.
Buy now and beat the higher prices
Should you buy a home now that interest rates are higher is the question that many are asking. You will get many answers from different sources, but our suggestion is now is the time to buy your new home. Get a home purchase analysis for free from the loan specialists at Cross Timbers Mortgage.