Should I wait for rates to drop before I buy a house or act now?
Before you get too far into the process of buying a house, you want to be certain you’re ready for homeownership. Given your financial circumstances at this point in your life, is now a good time to buy a house?
Even though changes in mortgage interest rates could make homeownership more affordable, you’ll want to be sure you’ve improved your credit score* and debt-to-income (DTI) ratio. Those factors could have a significant influence on the rate you could qualify for, maybe even as much as recent mortgage rate changes.
Where rates stand today (and how we got here)
Mortgage interest rates today are generally lower than they were a year ago. Led by Chairman Jerome Powell, the Federal Reserve has recommended rates stay about where they are for most of this year after lowering rates three times to end 2024. President Donald Trump has urged the Fed to lower rates, but the nation’s central bank has resisted the pressure, citing concerns over inflation and uncertainty over the president’s tariff threats.
What experts are watching for the next move in mortgage rates
Most eyes are on Powell and the Fed. A change in the federal funds rate of even a quarter of a percentage point could signal a drop in mortgage interest rates. The nation’s central bank at its latest meeting in mid-June did not predict whether it could cut rates by the end of the year but did suggest cuts might be possible.
What happens if I wait to buy a home
If you wait to buy a home and mortgage interest rates increase, it will make housing less affordable. It also could mean fewer homes for sale and higher purchase prices.
Home prices generally have increased over the past several years. For example, Richmond, Virginia is one of the most competitive housing markets in the country. A home purchased there in January 2023 for $294,763 could sell for about $438,500 in today’s market, data from Redfin shows.
Mortgage rate history aside, the National Association of REALTORS® in its most recent report suggests that more homes are on the market now for buyers to choose from and more borrowers are signing contracts for home sales.
Conventional wisdom suggests mortgage interest rates are likely to either stay where they are a bit longer or come down some, which could make homes more affordable and put more of them onto the market.
When it makes sense to buy now in the current housing market
There really is no wrong time to buy a house. Mortgage interest rates, home purchase prices, life events and your overall financial situation all help determine homebuying conditions, whether it's your first house or your ultimate dream home.
What that generally means is: If you need a house and your finances allow it, you should buy a house. If mortgage interest rates and prices come down, the difference over the life of something like a 30-year mortgage could matter some but likely won’t be a dealbreaker.
How can I start the mortgage process today?
You can start today with OriginPoint, get pre-approved and learn how much you can afford to borrow!
*OriginPoint does not provide credit counseling or credit repair services.
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Refinancing your mortgage may increase costs over the term of your loan. Restrictions may apply.
All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. OriginPoint does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error-free. Some information in the publication may have been provided by third parties and has not necessarily been verified by OriginPoint. OriginPoint, its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.
Your journey home begins here.
OriginPoint's Same-Day Mortgage (aka “FastTrack”) promotion offers qualified customers who provide certain required financial information/documentation to OriginPoint within 8 hours of locking a rate on a mortgage loan the opportunity to receive a loan approval within 1 business day of timely submission of documentation and does not suggest that the borrower will receive funding on the same day as their application submission. For purposes of this offer, documents provided after 1 pm local time or on a weekend or company holiday will be deemed submitted the next business day. OriginPoint cannot guarantee that a loan will be approved or that a closing will occur within a specific timeframe. OriginPoint reserves the right to revoke this approval at any time if there is a change in your financial condition or credit history which would impair your ability to repay this obligation. Read and understand your Loan Commitment before waiving any mortgage contingencies. Borrower documentation and Intent to Proceed must be signed within 8 business hours of receipt. Not eligible for all loan types or residence types. Minimum down payment requirements apply. Self-employed borrowers and Co-borrowers are not eligible. Not all borrowers will be approved. Borrower's interest rate will depend upon the specific characteristics of borrower's loan transaction, credit profile and other criteria. Eligible borrowers who successfully provide all required documentation within 8 business hours will receive a $250 Closing Cost Credit applied at closing, no cash value, and may not be combined with any other Lender promotions, discounts, or concessions. Not available in all states. Restrictions apply. Visit OriginPoint.com/same-day-mortgage for terms and conditions.
**Eligible borrowers must qualify for a "Clear to Close Loan Commitment" ("CTC”). OriginPoint cannot guarantee that a loan will be approved or that a closing will occur within a specific timeframe. CTC is subject to certain underwriting conditions, including clear title and no loss of appraisal waiver, amongst others. Not eligible for all loan types or residence types. Minimum down payment requirements apply. Property must be eligible for an Appraisal Waiver and borrower must opt in to AccountChek for automated income and asset verification. Self-employed borrowers and Co-borrowers are not eligible. Not all borrowers will be approved. Restrictions apply.
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Refinancing your mortgage may increase costs over the term of your loan. Restrictions may apply.
All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. OriginPoint does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error-free. Some information in the publication may have been provided by third parties and has not necessarily been verified by OriginPoint . OriginPoint its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.
