Early in the next year, my partner and I hope to purchase a home. Because we reside in a highly HCOL neighborhood, we have saved up about $120K collectively for a 20% down payment. We also each make about $120,000 annually and have excellent credit (780+).
Despite our year-long wait to buy in the hopes that interest rates would decline, they have continued to rise, recently standing at 8%! Should we act quickly if we find a property we want, or should we simply wait for interest rates to drop?
Yeah, I would expect them to fall.
I recently followed the ongoing conversation by the Bank of America, although they are adamant to speculate on whether they would fall, they expect the rates to go down to about 7%.
The only threat to the interest rates is that the Federal Reserve isn’t expected to cut its benchmark interest rate.
Plus, obviously high inflation rates all over.
Don’t base your purchases on tax deductions or interest rates.
It is predicted that interest rates would decline in the upcoming year, but no one is certain when or how much. In the long run, owning your own home is hard to top, though I’m not sure about the short term.
They’re not going anywhere, really, and even if they did, don’t you think that the market and prices would just rise again? Purchase a home you are delighted with right now, and if prices decline, be glad to refinance.