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Writer's pictureHeather Lupton

Should you wait for interest rates to come down to buy?

Updated: May 19


Waiting for rates to drop?

I've been getting this question quite frequently as of late with the interest rates we're experience for home loans.

The truth is, these rates we're seeing are not out of the norm. The average 30-year fixed mortgage rate over the last 50 years (roughly 1971 to 2023) was 7.74%.


That being said, what has changed is obviously the cost to purchase. The average residential sales price in Ravalli County year-to-date is $717,298. 😳 Shocking, I know.


So, are you still waiting for interest rates to drop before buying? Well, hold on to your house-hunting hat for a second, because here's the scoop.


Sure, lower interest rates can make borrowing money easier on the wallet, but let's not forget that there's more to the story than just rates.

When interest rates take a nosedive, something crazy happens in the real estate world. Demand shoots through the roof like a confetti cannon at a surprise party. Why? Because more folks can suddenly afford to jump on the homeownership train. And what does that do to house prices? It sends them on a delightful upward journey. Case in point, what we've experienced for the last couple of years here in Ravalli County.

I had buyers tell me back in 2020 they were going to "wait it out and see what happens" to housing prices, thinking the price of homes would tank and they'd get an "even better deal." Needless to say, those buyers are now priced out and missed out on the almost doubling of their investment / equity in the last couple of years.


Housing prices skyrocketed here because of buyer demand back when interest rates were low, coupled with the fact that everyone wanted to get out of the big cities to find their slice of the proverbial real estate pie here in Montana.


In the end, if you play the waiting game for interest rates to drop, you might discover that the home you've been dreaming about is now sporting a price tag with more zeroes than you anticipated or hoped for.


But fear not, my friend! If you're truly serious about finding your dream home, your secret weapon is a trustworthy real estate agent. We're here to help educate you and assist you in navigating the treacherous terrain of fluctuating rates and ever-evolving market trends.


No matter what the interest rates are up to, we'll guide you to a home that suits your budget and lifestyle. The old adage aptly applies here to "marry the house, and date the rate.”

The reality is, if you can afford the payment and it make sense for you, your lifestyle, and your needs, home ownership is always a better alternatively to renting.


Just think about all the folks who decided to wait to buy back in 2020. They lost out on equity, the lower interest rates, and lower home prices. They may even be priced out from buying all together now.


Granted, none of us have a crystal ball, but home ownership has always proven a wise investment in the long term. It's better than throwing away rent money, folks, and paying someone else's mortgage.


I'm all ears and here to assist you in making the best decision for you and your family when it comes to home ownership.


Heather Lupton contact info







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