With the economy in a downturn and mortgage rates surging, prospective home buyers around the United States are asking themselves, "Should I buy a house now or wait?" Many regions in the United States are seeing a surge in inflation that hasn’t been seen in years, making the dream of home buying a non-reality for many. For those still in a position to buy, let’s examine whether it makes sense to move forward now or wait for the market to improve.
Affordability Calculator
When buying a home, the most important question is whether you can afford it. Most mortgage brokers use a debt-to-income ratio of 36% to determine whether you qualify for a mortgage. In short, this means that your debt payments such as student loans, car payments, personal loans, credit cards, and other expenditures cannot exceed more than 36% of your pay. If you can afford to purchase a home today at the current mortgage rate, then you should not be scared away. Many sellers have to offer significant price reductions to draw buyers in and you can always refinance your mortgage when rates fall.
When Should I Buy a House?
Timing the housing market is next to impossible and fit is far more important than timing. If the house meets your needs and checks the boxes that require you to purchase it plus you can carry the mortgage payment at today’s rates, then the timing remains now to move forward with a purchase. With the housing market, the only known is that things change and the market today is not what the market will be next year or the year after. Similar to investing in the stock market, prices go up and down along with mortgage rates. Buying a house is stressful and the best piece of advice is only to buy what you can afford so you aren’t in a position of exceeding your financial obligations.
At Joe Myer’s Construction in Everett, Washington, we strive to deliver quality work at competitive prices. Since 2005, we’ve been serving our community with beautiful construction projects including remodeling, additions, bathrooms, kitchens, and outdoor living spaces. We specialize in both commercial and residential construction projects and no job is too big for us. Give us a call today to schedule a time to meet with our team and learn how we can help you with your construction needs.