April 28th, 2023 11:37 AM by Sam Kader
Since March of 2020 and the COVID-19 Pandemic, "normal" has been difficult to describe and for those thinking of buying a home over the last few years, the market has been anything but what used to be though as "normal". Property appreciation ascended rapidly due to high demand and lack of inventory and mortgage rates jump significantly due to economic concerns.
To buy now or wait. Higher mortgage interest rates generally mean a larger monthly payment. Mortgage rates change daily and PLEASE do not expect rates will come back down to 2021 level again. There are options to lower your rate such as with temporary rate buy-down option or with an Adjustable Rate Mortgage (ARM).
Your goal is to have a monthly mortgage payment that is within your budget and not to overstretch yourself financially leaving nothing for repairs, living expenses and emergency savings. If you can comfortably afford the mortgage payment, then now is the time to buy. Else, waiting would be more prudent.
Timeline. If you are planning to stay put for only a year or two, in this current economic cycle, waiting would be more prudent.
Housing market. Buying a house in a more balanced or "normal" market when you are up against 1 or 2 other buyers rather than 20 and where you can actually inspect the house may be better fit your risk appetite than buying during the 2021 housing market.