Buyers: Should You Just Keep Renting?

Recently, I’ve heard a lot from my buyers about their concerns with the current interest rates. With rates as high as they are, many of my buyers are wondering if they should stop their home search and start renting. Whenever you have this predicament, there are a few things you should consider.

We know that as interest rates rise, purchasing power goes down. That means you have to look at the lower price point and see if your goals are still possible. For instance, if you are looking for a two-bedroom home, are two-bedroom homes still within your budget?

Another important thing to consider is how rising interest rates affect your monthly payment. If your monthly payment is still affordable, and you’ve found a property that you love, you should consider moving forward. 

"Interest rates will come back down eventually."

Finally, remember that you marry the house but only date the interest rate. If you find a home that you can manage, with a payment that is within your budget, that doesn’t mean you are stuck with an interest rate that’s higher than you would like. Interest rates will come back down eventually, and when they do, you can refinance.

If you want more help deciding whether or not to pursue purchasing a home or have any questions, please feel free to reach out by phone call or email. I am always here to help you.