Blog 2024 Real Estate Should You Wait for Mortgage Rates to Drop? 6 Reasons to Buy a Home Now

Should You Wait for Mortgage Rates to Drop? 6 Reasons to Buy a Home Now

By Living Room Realty, September 19, 2024

The Federal Reserve cut interest rates by half a point earlier this week, which resulted in the lowest mortgage rates we’ve seen since early February 2023.  And with the promise of more cuts in the next few months, you may be wondering if you should wait for even lower rates before buying home. The truth is, this strategy could have some unintended consequences. Here are six reasons why it might be better to buy now before prices and competition rise.

1 – Stiff Competition

As rates drop and more buyers enter the market, there’s likely to be increased competition and a higher likelihood of the return of bidding wars.

2 – Rising Home Prices

With higher demand, home prices will also likely rise, which will decrease your buying power.

3 – Paying More for Less

Waiting for the perfect rate might cost you more in the long run. You could ultimately end up paying more money for less house, which may leave you having to compromise on important details in your new home.

4 – Big Drops Aren’t Likely

While mortgage rates are expected to continue trending downward, most experts agree that we aren’t likely to see the historically low rates that were available immediately post-pandemic.

5 – You Can Refinance Later

Remember, mortgage rates aren’t permanent! So if you do see rates drop to a level you’re more comfortable with, you can always refinance down the road to secure that lower monthly payment.

6 – Get the Best of Both Worlds

Why wait? Secure the home that fits your lifestyle and enjoy it now, knowing that you can adjust your rate later. (You can check out some recent listings here.)

If you’ve been thinking of buying in the next few years, you owe it to yourself to talk to a knowledgeable lender and real estate broker who can help you map out the best plan for your current life and your long-term goals. Reach out to me or anyone on the Bridge to Portland Group team anytime to discuss the Portland market or for a mortgage lender referral!


Looking to make a move? I’d love to work with you!

Beth Benner, Broker Licensed in Oregon & Washington

503-819-2885  |  www.bridgetoportland.com  |  beth@bridgetoportland.com

Living Room Realty

...
Read More
  • T: 503-719-5588
  • welcome@livingroomre.com

You might also enjoy

The 85% Rule: Your Key to Overcoming Analysis Paralysis in Home Buying

Will Sing

Hey future homeowners! Ever find yourself stuck in a loop, analyzing every little detail while hunting...

Dollars & Sense: Home Buyer Class – Info & Client Testimonial

Nicole Chavira

Dollars & Sense: Home Buyer Class Info & Client Testimonial July 16th 6pm – 730pm TWO...

What Rain Taught Me About Home Ownership, And Why It Matters When You Buy a House

Ariel Kempf

An Old Wooden Threshold and Rain in Portland A simple kitchen floor refresh uncovered hidden water...

Title: What Is Deferred Maintenance? 5 Red Flags Every Homebuyer Should Watch For

Sally Tansill

As a realtor who’s walked through hundreds of homes with buyers, I can’t stress this enough:...