Home prices are climbing, and mortgage rates are at a high we haven’t seen in months. Experts say these rates might not drop anytime soon. So, if you’re considering buying a house, it might be wise to do it now.

Elections and Rates

Some people wait for big events like elections, hoping they’ll bring lower rates. Yet, no promise will happen. History shows that elections don’t always change mortgage rates much. So, waiting for the November elections might not help you get a better rate.

Buying Now and Refinancing Later

If you buy now, you might be able to refinance later when rates drop. Refinancing means you replace your current mortgage with a new one that has a lower rate. This can save you money over time.

The 2/1 and 1/1 Buydowns

A 2/1 buydown can help you save money at the start. Here’s how it works: In the first year, your rate is 2% lower than normal. In the second year, it’s 1% lower. After that, it goes back to the normal rate. A 1/1 buydown is similar, but the lower rate only lasts for the first year. These buydowns mean your payments start lower, which can greatly help. Plus, they give you a “bridge” to the future when you might refinance to a lower rate.

In Summary

Buying a home now, even with higher rates, could be a good move. You can start with lower payments with a buydown and refinance when rates improve. Waiting for the elections might not change anything, so if you’re ready, consider making your move now.