Is now a good time to buy a house?
It’s an evergreen question — always relevant — and it’s a highly personal question. Only you can answer whether or not it makes sense for you to buy a home at any given time.
That said, the realities of unpredictable interest rates and the ever changing housing market will play a role in your decision. And, right now, those indicators are blinking red.
As of December 2022, consumer confidence is quite low according to Fannie Mae’s Home Purchase Sentiment Index. Only 16% of consumers believe it’s currently a good time to buy a house. So who’s right?
Is Now a Good Time to Buy a House?
As we approach 2023, the dramatic increase in housing prices we were seeing in 2021 has stalled. In fact, home prices have decreased for nine consecutive months, according to the National Association of Realtors. Not only that, but some experts believe the steady leak may become a stream and a collapse in prices is coming.
On top of that, fixed 30-year mortgage interest rates are hovering around 6.5% — as high as they’ve been in 20 years — though they did slightly decrease in November 2022.
When asked about the outlook for mortgage rates in 2023, eight industry insiders told Mortgage Reports they expected interest rates to run anywhere from 5% to 9% next year — quite a range that doesn’t necessarily make a future homebuyer brim with excitement.
Inflation could continue to push rates up, while a looming recession would likely cause them to drop. Ongoing inflation, Federal Reserve policies and impending recession fears make the near future of interest rates difficult to predict.
That said, if you’re set on buying a home soon, you have options. You just need to be prepared to take on that financial burden.
4 Questions to Consider Before You Buy a House
Ultimately, whether or not you should buy a home right now depends largely on how ready you are and your financial situation more so than market…