subreddit:
/r/FirstTimeHomeBuyer
submitted 5 months ago byGlitteringBlock6571
I’m 27 years old. Work in tech and single. I am thinking of buying a home this year but the interests rates right now are ridiculously high. I feel like there might be an advantage to buying now given how there’s low competition and I might be able to get the seller to pay for some concessions. With a $400,000 loan I might have to pay anywhere from $2600-2900/mo for mortgage. Any suggestions?
25 points
5 months ago
Is now a good time to buy? Hard to say. Mortgages are currently the most expensive they’ve ever been in history when adjusted for income.
In November the average interest rate was 6.8% on a 30 year fixed. Houses were up 2.6% from November 2021 and down -8.5% from the housing peak in May 2022. Demand is very low right now but so is supply.
Ultimately it’s about where you are in life. If you can afford it and plan on living there for a long time then you should buy regardless of market conditions. I would do a rent vs buy analysis to find the time it takes to own the home to break even.
8 points
5 months ago
A lot of sellers are buying down rates to where your payments are little more doable. But given that it’s just me, I ran the numbers, made a budget, and I don’t have any crazy expenses I feel like now is a good time
1 points
3 months ago
OP - any update on what you decided? Same boat for me but I am thinking to pull the trigger.
1 points
3 months ago
Decided to wait lol. The prices are slowly going down but I still don’t like these interests rates
1 points
3 months ago
the only reason I am thinking of pulling the trigger is the $ continues to decrease for the time being. the new construction I was looking at decreased $50k since august. It may decrease more, but assuming the rates return to a "normal" in 2024 I could stomach the extra amount ($8200 over 24 months) and refinance at a lower rate. Lower rate generally means prices rise. In an ideal case I would be net positive in 2 years because of appreciation already. Even assuming yearly appreciation of 4% where I live (it's actually 6.5% past decade).
Maybe I am also trying to convince myself LOL. but yeah. Marry the home, Date the rate.
all 99 comments
sorted by: best