This is a great question. Unfortunately everyone is guessing which way rates are moving. Maybe they go up maybe they drop. Nobody knows the answer.
For me the better question is should I rent, buy or move home with my parents?? Because whatever mortgage rates might be you definitely need a place to live.
Not everyone has the “move home” option. And for most of us that do the answer might be “thank you but no thank you”
You do not know how interest rates will move and you do not want to move home so the more realistic question is rent or buy.
Rent gives you flexibility over the short term. No responsibility to maintain a property. And maybe you can rent a nicer property with a better location. Maybe rates improve and prices drop. Win/win
Buy and you start paying a mortgage. Your money is invested in real estate. You have longer term stability. Hopefully the property you buy appreciates and rates improve. Win/win.
Whether to buy or rent is a personal question and depends on an individual’s circumstances.
Investors have a different perspective.
Investors will look at the potential cash flow of a property, condition, potential, etc and decide if they should buy based on their total investment including the interest rate they pay to borrow money.
The rate might be a deterrent but if the numbers work and the risk is manageable then pay the market rate to reach your business objectives.
I do not agree with the idea of waiting for rates to come down. My belief is to educate yourself about mortgage rates, housing costs, market rents and understand how your income, your job outlook, your credit, etc. all line up.
Now you can make an informed decision based on things you know not things beyond your control.
So what is best for you when deciding where to live? Rent, buy or ??????
Call me if you want to talk it over!!!
Stephen McCarthy
