“I’m waiting for interest rates to drop before I buy”
Waiting to buy a home until interest rates drop may seem like a no-brainer, BUT there are other factors you may want to consider when making that decision.
While it's true that lower interest rates make it cheaper to borrow money, interest rates are just one factor that determine affordability.
Another is demand. When rates drop, demand increases because more people can afford to buy. As a result, prices tend to inch upward as interest rates dip down.
In other words, if you wait to buy a home until interest rates drop, you may find you can't afford the home you want because prices have jumped even more.
If you're serious about buying, the best thing you can do is to talk to a trusted agent (and lender) to discuss your options. I always tell people, the right time to buy is WHEN YOU’RE READY. Everyone’s situation & life stage is different and should be treated as such. Real estate is not one-size-fits-all.
Let me know if you want to talk more about navigating this market, I'm here to help you make the best decision for you and your family.
Source: How Interest Rates Affect the Housing Market.