Trying To Buy a Home? Hang in There.

Trying To Buy a Home? Hang in There.

Sales Director/Loan Officer
PJ Byron
Published on May 11, 2023
Trying To Buy a Home? Hang in There.

Trying To Buy a Home? Hang in There.

While leaning more towards buyers, we're still in a sellers' market. And if you're trying to buy a home, that means you're likely facing some unique challenges, like difficulty finding a home and volatile mortgage rates. But keep in mind, there are still benefits to being a buyer in today's market that give you good reason to stick with your search. Here are a few of them.

Long-Term Benefits Outweigh Short-Term Challenges

Owning a home grows your net worth. And, since building that wealth takes time, it makes sense to start as soon as you can. If you wait to buy and keep renting, you'll miss out on those monthly housing payments going toward your home equity. Freddie Mac, whose job is helping to ensure a reliable and affordable supply of mortgage funds across the country, puts it this way:

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"Homeownership not only builds a sense of pride and accomplishment, but it's also an important step toward achieving long-term financial stability."

The key there is long-term because the financial benefits homeownership provides, like home value appreciation and equity, grow over time. Those benefits are worth the short-term challenges today's sellers' market presents.

Mortgage Rates Are Constantly Changing

Mortgage rates have been hovering around 6.5% over the last several months. However, as Sam Khater, Chief Economist at Freddie Macnotes, they've been coming down some recently:

Verify my mortgage eligibility (Feb 26th, 2024)

"Economic uncertainty continues to bring mortgage rates down. Over the last several weeks, declining rates have brought borrowers back to the market . . ."

Lower mortgage rates improve your purchasing power when you buy, and that can help make homeownership more affordable. Hannah Jones, Economic Data Analyst at realtor.comexplains:

"As we move into the spring buying season, mortgage rates have ticked lower, a welcomed sign of progress towards affordability."

Verify my mortgage eligibility (Feb 26th, 2024)

The recent drop in mortgage rates is good news. Especially if you had a hard time affording to buy a home when they peaked. Even slightly lower rates allow you to qualify for more mortgage and make offers on more homes.

Home Prices Will Increase

According to the Home Price Expectation Survey, which polls over 100 real estate experts, home values will go up steadily over the next few years after a slight decline this year (see graph below):

Verify my mortgage eligibility (Feb 26th, 2024)

Rising home prices in the coming years mean two things for you as a buyer:

  • Waiting to buy a home could mean it'll become more expensive to do so.
  • Buying now means the value of your home, and your net worth, will likely grow over time.

Bottom Line

If you've been trying to buy a home, hang in there. Mortgage rates have ticked down some recently. Home prices are forecast to increase in the coming years, and the long-term benefits of homeownership outweigh many of the short-term challenges. Let’s connect if you want to know more about our local market, find out where rates are today, or get pre-qualified for a mortgage.

At The Byron Mortgage Team, we’re dedicated to finding great rates and loan options for customers while offering some of the fastest turn times in the industry. Our goal is to act as a trusted advisor, providing highly personalized service and helping our clients through every step of the loan process – from application to closing and beyond. It’s all designed to exceed expectations, provide satisfaction, and earn trust.

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Sales Director/Loan Officer
PJ Byron Sales Director/Loan Officer
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(401) 626-5983

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