While waiting for the interest rates to drop might seem tempting, there are strong reasons to consider purchasing a home now and refinancing later:

1- Home Prices Are Likely to Rise: If demand stays strong, home prices could increase while you're waiting.  Buying now locks in today's prices, potentially saving you money in the long term.

2- Build Equity Faster: By purchasing now, you start building equity sooner.  Instead of paying rent, you're investing in your future.

3- Supply May Diminish: As rates drop, more buyers are likely to enter the market, leading to stiffer competitions (bidding wars) and possibly fewer options.  Right now, you may have an edge in negotiating terms.  This is where the ability to refinance comes into play.  When those rates drop, you already have your Home and just talk with a Loan Consultant about your refinancing options.

4- Tax Benefits: Mortgage interest is often tax-deductible.  Even with higher rates, those deductions can help offset some of the additional cost. 

Right now, your guess is as good as anyone's as to what the interest rates are going to be doing.  It never hurts to talk with a Loan Consultant to figure out your options.

 

Let us know when you are ready to look into your options!