Skip To Content

Waiting For a Lower Mortgage Rate Could Cost You.

If you are a buyer sitting on the fence waiting for the mortgage rates to come down, you are not alone.

Many people don’t consider just how much waiting can cost you. 

Right now, inventory of homes for sale is still at historic low levels, however, the market has softened, which means some buyers are sitting out of the market waiting.

What are they waiting for?  They are waiting (hoping) for lower interest rates and prices to come down. This softened market means you can negotiate a better deal on the home you buy now. 

In 2022 we saw mortgage rates in the 2.5% to 3.25% range, but we were also seeing homes go under contract for 5, 10, 15 or even 20 percent over the asking price. Inventory levels were low, there were multiple offers on most listings and there were more buyers than there were homes.

Fast forward to 2023 and we have seen buyers cool off a little, this means homes sit for more days on the market, which enables the buyer to negotiate a better purchase price, repair provisions or credits towards closing costs – it is a good time to buy a home and get a “deal” on the purchase.

Waiting to buy could wipe out all of those potential savings you could benefit from by buying your home now.

Waiting could cost you thousands.

Why are inventory levels still low?

A similar number of homes are still selling, they just take a little longer. The main factor for current low inventory levels is that many sellers, who purchased with low mortgage rates, are not selling – which helps keep levels low and prices from dropping. There have been zero signs over the past 12 months that prices in Sarasota, Charlotte and Manatee Counties are decreasing – they will increased year over year!

Buying now can save you a lot of money on the purchase and will greatly affect your equity – wealth!

If you are holding off from buying until you see mortgage rates hit 5.5% then you are with a large group of people and every economist predicts that once rates hit these levels, there will be an influx of homebuyers, sitting on the sidelines, who decide they want to buy. This is going to cause a “Buying Frenzy” and we will then see the return of “multiple offers” which means offers over asking price and a rapid increase in the average home purchase values.

So, if you work out a $400k home purchase with 20% down and a 7.5% mortgage will cost you $2866.00 monthly, compared to a 5.5% mortgage rate costing you $2466.00 – an extra $420 a month.

When rates drop and the market competition increases, so too will the number of offers and the average offer price, which could see your $400k home cost you $410k, $420k or even $430k if the demand is intense enough.

Date the Rate and Marry the Home

You should “Date the Rate” and “Marry the Home” which means buying the RIGHT home (because you will have more choice now) at the BEST POSSIBLE PRICE and then as soon as the rates drop to your desired level you can refinance!

Think about the expense that waiting could cost you in buying your home in Florida.

Speak with your Real Estate Agent and a Licensed Mortgage Professional to way up the options of buying today or waiting for lower rates. Waiting it out could be something you live to regret, so compare the options today.

Trackback from your site.

Leave a Reply


About our blog

+1 us on Google Plus!

Contact Us Now