08/07/2026
Some clients want to purchase a home, yet either the market offers a limited inventory, or the rates are too high to purchase.
Let's tackle the first, limited inventory. Present potential Sellers who want to move up often have a 3-4% mortgage in a market experiencing 6+ interest rates. So they decide to sit back and wait until the interest rates drop.
Next, let's tackle the second, high interest rates. The federal lending rate to banks and lenders is rather high at 3.5-3.75%. Consequently, lenders offer their mortgage rates on top of that. And yes, that nearly doubles the rates to the borrower, yet the actual rate to the borrower is scaled depending on many criteria, beginning with the borrower's FICO scores. Unfortunately, it takes quite a while to drop interest rates back to the much more affordable 3-4% range.
In the meantime, housing prices are growing and eating away buyer's downpayment savings. Which in turn reduces the range of homes they can afford.
Not buying a home today, Sellers or Renters will lose the ability accrew equity.
So, if today's Buyers are financially secure and have a stable job outlook, then perhaps it's a wise move to purchase today, with the thought they can refinance at some strategic time in the future.
See what the article below has to say about the Buy-Rent conundrum.
The survey found that 77% believed that waiting to buy a home has financial consequences, including facing higher home prices over time."
