The current seller’s market is making it difficult for everyone to buy a home. The inflating price, the volatile mortgage rates, and the general market sentiment aren’t attuned to what you want in an environment.

But even though things look bleak right now, they all have a silver lining. Here are all the reasons you must continue persevering a bit longer. 

Owning a Home isn’t Just a Short Term Gain

Owning a home isn’t just a place you can call your own - it is about building your net worth. And wealth building takes time. And if you want to cut it short, you must start searching for your home early. Keep renting, and your equity will be funneled into a property that is not yours; you would be putting money away from your home equity. 

Freddie Mac says. 

“Homeownership not a only builds a sense of pride and accomplishment, but it’s also an important step towards achieving long-term financial stability.”

The key term is “long-term”. With home ownership, you get ample financial benefits that you can draw from home price appreciation, which grows your wealth over time. And when you have long-term wealth plans, short-term challenges are only little things to overcome. 

Mortgage Rates are Volatile - But they can follow a Downtrend

Mortgage rates have been trending around the 6.5% range for the past few months. But, if the Chief Economist at Freddie Mac is to be believed, the rates have started to come down. 

“Economic Uncertainty continues to bring mortgage rates down. Over the last several weeks, declining rates have brought borrowers back to the market.”

With lower mortgage rates, buying a house isn’t a distant dream anymore. Your purchasing power increases, getting closer to getting home equity that will funnel into your future wealth. Hannah Jones, Economic Data Analyst at realtor.com, says that the current volatility will mean good for the affordable factor of houses. She states, 

“As we move into the spring bing season, mortgage rates have ticked lower, a welcomed sign of progress towards affordability.”

This recent downturn in mortgage charts means that homebuyers who couldn’t find a home to buy when the mortgage prices peaked can do so now. 

Waiting for Longer Could Lead to Unaffordable Homes

The home Price Expectation survey polled over 100 real estate experts who explicitly said that the price of homes would go up over the next few years, according to the graph below:

 

With rising home prices, two things are bound to happen. 

  • If you wait too long, you might lose the chance of buying a home as it will become more expensive. 
  • Being steadfast about buying a home today means getting the perk of price appreciation of your home with time, increasing your home equity. 

Bottom Line

Don’t let the high mortgage rates deter you from searching for a home. The rates may come down soon, but the home price will increase in the coming years. So, keep searching and think of the current market as a short-term challenge you can overcome to gain long-term benefits.