The decision to buy a home is a major life step, and with mortgage rates fluctuating, many potential homebuyers find themselves at a crossroads. Should you wait for rates to come down before taking the plunge, or is it better to seize the opportunity when the timing is right for their personal circumstances? Join us this week as Justin offers some insightful advice on this dilemma.

Buyer Demand

In the housing market, there’s a longstanding relationship between mortgage rates and buyer demand. Typically, the higher rates are, you’ll see lower buyer demand. That’s because some people who want to move will be hesitant to take on a higher mortgage rate for their next home. So, they decide to wait it out and put their plans on hold.

But when rates start to come down, things change. It goes from limited or weak demand to good or strong demand. That’s because a big portion of the buyers who sat on the sidelines when rates were higher are going to jump back in and make their moves happen

"If you're ready to buy your first place, you should do it," Landis says. “People thought rates were going to come down earlier this year, and they haven't. Who knows what's going to happen with that? It's really hard to predict.”

Down Payment Assistance

If you're prepared to buy and can take advantage of the various down payment assistance programs available, we believe it is better to make the move when the time is right for you. After all, there's always the option to refinance later if rates drop, essentially providing "free money" in the form of a lower monthly payment.

"If rates come down, you refinance. That's like free money," Landis explains. "It really is. All of a sudden, your payment goes down, and your decision to buy gets even better at that point."

Bottom Line

Rather than letting mortgage rates dictate your homebuying timeline, we advise that letting your personal readiness be the driving force behind the decision. If you're financially and emotionally prepared to take on the responsibilities of homeownership, it may be wiser to seize the opportunity rather than waiting indefinitely for an elusive "perfect" interest rate.

Every situation is unique, and it's crucial to carefully evaluate your financial circumstances, long-term goals, and personal priorities before making such a significant investment. Reach out to your trusted JLG agent today so start a conversation about your homebuying goals.

Tune in for weekly valuable insights and practical tips with Justin and Kristin on Atlanta’s Q99.7. This insightful discussion was brought to you by a paid partnership with Kristin from The Bert Show on Atlanta’s Q99.7.

Need to find an agent?

Fill out the contact form below to get connected with us today, or head to our Meet The Team page to learn about our agents and find the right fit for your needs.