Why you should not wait for the right interest rate to buy a home.

As I notice the decline in the market based on interest rates rising to 8%, I have observed more and more individuals shy away from the housing market because interest rates are growing at a rapid speed. However, looking at historical prime interest rates in the housing market shows that this element is not a very strong argument to weigh your decision making process on. 

The historical prime interest has been over 6% from year 1983 to 2001, ranging from 12.50% to 6% throughout the 18 year time span. Within these 18 years, the interest rates have not been lower than 7% for more than 5 times. This shows you that if you are waiting for a better interest rate. 10 or more years could go by before you even see the numbers that you are looking for. This is why you should prepare in other ways instead of waiting on a factor that you are not able to change. 

So, what are some control variables that we can control and change? We have control over our finances. For example, creating more income for our household, whether that is picking up a second job, or finding a higher paying position. Investing in school, to get a higher career that pays more, budgeting for a larger down payment, or buying a home that is reasonable in price and using that property as a beginning journey, instead of a forever home.These are variables that we can control, instead of waiting for a reasonable interest rate, which is something that may never change in your expected timeframe and vision for your life. 

Start now, don't wait for a perfect moment, create the perfect moment. What makes a moment perfect is the action that we take towards the goal now. The perfect moment lies in the present. If you need any advice and would like to discuss your next steps towards home ownership here in Seattle Washington, please give me a call.

Have an amazing day :)

Your Favorite Seattle Realtor

Resources: https://www.jpmorganchase.com/about/our-business/historical-prime-rate