Most people think of their home as a place where life unfolds - they raise children, they nurture relationships, they grow old. It is correct to think of your home in this way, but it is also represents the largest asset that most people have. Like any asset, you want it to grow over time and gain equity in your asset. Trying to time the market based solely on interest rates might actually cost you.
The Hidden Cost of Waiting: Missed Equity
Every month you wait for interest rates to move is a month you spend paying 100% interest on rent or missing out on property appreciation.
Historically, real estate values trend upward over time. If a home you like today costs $400,000, and home values appreciate by just 4% to 5% over the next year while you wait for rates to shift, that same home will cost $416,000 to $420,000 next year.
By waiting for lower borrowing costs, you risk paying more for the asset itself and missing out on the equity growth you would have built as an owner.