Marry the House, Date the Rate

My dog Daisy may not be very interested in what this phrase means, but you might.

Mortgage rates are back down below 7% and the Fed is expected to lower the Fed Rate three more times this year.

I wish I had kept my 3.5% mortgage back in 2021. Oh well, “c’est la vie.” The good news is that I no longer have that 14% rate I once had back in the 80’s! Back then, I refinanced that 14% rate down TWICE to get to a rational rate. I loved (was married to) my home but I wasn’t “married to the rate”; It was a very short-term relationship. This is how mortgage rates can be viewed.

If you really desire/need to make a move, what should you do? Sell and then buy now with a 6.5% mortgage? Should you wait until mortgage rates go down to 6.0%, 5.5%, 5.0%,or perhaps even 4.5% and then buy that newer, bigger home you really want?

If you don’t need to sell a home first, you should buy now! The purchase price will most likely be lower now, you’ll capture that appreciation beginning now, and you can refinance your mortgage whenever it makes sense. 

If you do need to sell your home first, often it makes sense to proceed now, but not always. If you need help analyzing the variables, I’d be happy to help you out. Call, email, or text me anytime.