According to U.S. News Housing Market Index, home prices increased 5.1% year-over-year as of October 2024, while 30-year mortgage rates remain above 6%. Despite the Federal Reserve cutting interest rates three times this year, mortgage rates have stayed high, currently averaging 6.85%. With 2025 approaching, potential homebuyers are weighing their options: buy now or wait?

Key Considerations for Buying Now

1. You Need to Move and Are Financially Ready If life circumstances like a job change or family growth necessitate a move, and you can afford homeownership, buying now offers stability and equity-building opportunities.

2. You Can Handle High Interest Rates While today’s rates may seem steep, they are historically normal. If you can afford the payments now, you can refinance later if rates drop.

3. Long-Term Plans Planning to stay in the home for years? Buying now allows you to benefit from potential home appreciation and avoid rising rent costs.

When to Wait

1. Affordability Concerns If current rates and prices stretch your budget, renting might be a better short-term option. Use the time to save and improve your financial position.

2. Inventory Challenges Housing supply remains tight, though it’s improving. Waiting could mean more options as rates drop and sellers re-enter the market.

3. Loan Qualification Issues Struggling to qualify for a mortgage? Focus on lowering debt and boosting your credit score to better position yourself for future buying opportunities.

The Bottom Line

If you're ready financially and have long-term plans, now is the time to act. Reach out to the Stuecher Manning Group today to discuss your unique situation and explore your best options.

----------

Source: realestate.usnews.com