I’m talking to a lot of buyers, and what they’re telling me is they’re holding off because they think that interest rates are going to drop next year.
Well, that may be true, but let’s look at some numbers. If you bought a house right now at 6.84% interest and it was a $500,000 mortgage, your monthly payment is going to be $3,453. So you wait a year, say interest rates go down by a whole percent, which is unlikely, you’re going to have more competition on the market.
That mortgage now could be $550,000, and if that’s the case, your monthly payments are going to be $3,467 a month.
Let’s talk about whether it’s wise to wait or if you should talk to a mortgage broker and get into the housing market this year.
Watch the market update here