I recently helped a client purchase a home - helping them through the entire transaction and offering very competitive rates to them - but still historically high. They chose to continue because they viewed the financing as temporary.
This leads me to part 2 of my series on timing the market. It is not generally a good idea or even possible:
You Can "Date the Rate," But You "Marry the Price"
One of the most valuable rules in real estate finance is simple: Your purchase price is permanent, but your interest rate is temporary.
Remember:
Your Purchase Price - Does not change after the sell and determines your core equity
Your Interest Rate - Can be refinanced when market conditions shift
If you buy a home when rates are moderate or high, you face less competition and have more bargaining power. You can negotiate price concessions, seller credits, or repair requests. Once rates drop in the future, you can simply refinance into a lower rate while keeping your lower purchase price locked in.
Conversely, if you buy at the peak of a bidding war when rates are low, you are stuck with that inflated purchase price forever. Those that bought a couple of years ago at peak Seller's Market are now grappling with little to no equity in the homes they purchased.
