Interest Rates & The Current Market

I know that buying now may seem like not the best time since the interest rates are going up, But if you are currently renting, and if you're able to qualify, I think buying is still the best way to go.   

As of January 2023, many experts are predicting that 'floor' in home prices in the Colorado Springs area may be a month or so away. [Ultimately it depends on what the FED does....but if things keep trending the way the yare now, the housing floor is not far off] So, if you are able to buy now, this is when you're most likely to get the best deal on a home.

Either way, once interest rates start decreasing, home prices will start increasing. And, with the Housing Shortage, that will likely mean bidding wars again.. So, now is a great time to get the home search going!

I guess the main question to ask yourself is: "Would you pay a higher sales price or a lower sales price for the same home?"

There are 4 ways to look at a home purchase right now if you are able to qualify.    

1. If you buy now, and the interest rates keep going up for the next year or so....you'll be happy that you bought now, and you will begin to gain equity 
2. If you buy now, and the interest rates drop in the next year or so, then you can alway refinance to the lower interest rate (and many lenders can roll in, or absorb, the closing costs),  and you will begin  gaining equity 
3. If you buy now, and the interest rate stays the same for the foreseeable future, then you'll be glad you bought a year from now since the interest rates didn't change and you will begin gaining equity.
4. You wait to buy, and continue to rent, in hopes that interest rates drop…meanwhile while you’re waiting and renting home prices will most likely continue to increase and there is no guarantee that rates will drop back down to the 4% range (or lower)....likely it will settle closer to 5%. And, if you are renting, you’ll be helping someone else pay down their mortgage and help them increase their equity.