If you’ve been thinking about buying a home but waiting for the “perfect time,” you’re not alone. Many buyers hesitate due to interest rates, market conditions or personal financial concerns. However, the reality is that waiting to buy could cost you more in the long run.
In this post, we’ll break down the three key factors that make waiting an expensive decision:
- Home Prices Are Rising
- Interest Rates Impact Affordability
- Your Buying Power Shrinks Over Time
Home Prices Are Rising
Real estate values continue to appreciate, even in shifting markets. Delaying your home purchase could mean paying thousands more for the same home in just a year or two. Here’s an example:
- If home prices increase by just 3% annually, a $350,000 home today could cost $10,500 more next year.
- Over five years, that’s an extra $55,000—just for waiting.
Not only would you need a larger down payment, but you’d also lose out on potential equity gains had you purchased sooner.
Interest Rates Impact Affordability
Mortgage rates fluctuate, and even small changes can significantly impact your monthly payment. Consider this:
- A 1% increase in mortgage rates can add hundreds of dollars to your monthly payment.
- Over a 30-year loan, that could mean paying tens of thousands more in interest.
If you wait and rates increase, you may still qualify for a home, but your monthly budget could be stretched thinner, limiting your choices.
Your Buying Power Shrinks Over Time
As home prices rise and mortgage rates fluctuate, your ability to afford your ideal home diminishes. The longer you wait:
- You may afford less home than you could today.
- You may need a larger down payment to keep payments affordable.
- You may face more competition from buyers who act sooner.
For example, a buyer who qualifies for a $400,000 home today might only be able to afford a $375,000 home next year due to rising rates and prices. That could mean settling for a smaller home, fewer amenities or a less desirable location.
Don’t Let the Cost of Waiting Hold You Back
While it’s important to be financially prepared, waiting too long could cost you the home you really want. The best way to determine your options is to talk to a mortgage professional who can help you assess:
- Your current buying power
- Available loan programs and assistance options
- Whether refinancing later could help if rates drop
The key takeaway? If you’re financially ready, buying now could save you money and build wealth over time.
Ready to Explore Your Options?
Don’t let the market dictate your future. Reach out today for a personalized home financing strategy that helps you move forward with confidence.
NMLS# 101561. Terms and conditions apply. Offer of credit is subject to credit approval. Contact Howard Hanna Mortgage Services for mortgage products and eligibility. For full licensing information, visit www.nmlsconsumeraccess.org. Calculations are for illustrative purposes only, and the information provided is subject to change without notice. This is not a Loan Estimate, nor is it a commitment for specific loan terms, interest rates, or payment amounts. Howard Hanna Mortgage does not guarantee the availability of any terms listed on this flyer. The calculations, including the APR, credit score, loan amounts, etc. are estimates, and do not account for all fees and costs that may affect loan terms, interest rates or monthly payment details. Results will vary depending on each applicant’s unique situation for loan purpose, down-payment, credit score, lock duration, and market conditions at the time of the application, or at the time of rate-lock. Not all applicants will be eligible for all loan products. Homeowner Association Dues may apply. Actual property taxes and home insurance will vary based on the carrier, property location, coverage specifics and credit score. Private Mortgage Insurance could apply if the down-payment is less than 20% of the purchase price.
