What Mortgage Rate Would Encourage You to Move to a New Punta Gorda Home?

What Mortgage Rate Would Encourage You to Move to a New Punta Gorda Home?If you are considering the purchase of a Punta Gorda home, you no doubt have thought about the affordability of your next home. If you have you are not alone. There are several potential homebuyers in Punta Gorda and across the country that have put off their homebuying plans because of an increase in mortgage interest rates that remains higher than many people expected. 

Top Reasons Buyers are Holding on Their Home Buying Plans

There are three major reasons that have kept buyers across the country from purchasing their next home. You might find yourself in one of these categories. Looking at information from Bright MLS these are the top reasons that buyers are holding off on purchasing a home:

Mortgage Rates: 72.1% of buyers have communicated holding off because of where mortgage rates are

Low Inventory Numbers: 34.4% of potential home buyers have communicated a concern with the amount of homes for sale. Some buyers are reluctant to enter a bidding war with other buyers because there continues to be more buyers than homes available. Some buyers are concerned they won't be able to find the home they are looking for. 

An Increase in Home Prices/ Home Affordability:  17.4% of potential buyers have held off on their home purchases because of a concern over increasing home prices and their impact on the affordability of their next home. 

Should You Wait for Mortgage Rates to Come Down Before You Purchase a Punta Gorda Home? 

Is there an ideal mortgage rate number you are holding out for before you purchase your next home? Is this the best homebuying strategy? Should you continue to hold off on your homebuying plans? The answer to these questions depends upon a home buyer's financial health. 

There are several reasons to not hold off on your homebuying plans if you have been holding out for more ideal buying conditions.  The biggest reasons include that there is no ultimate guarantee of where mortgage rates are headed if you have an ideal mortgage rate in your mind you could end up waiting much longer than you would like. Mortgage rates are predicted to decrease, but they just took a slight increase this month back to 7%. 

As someone waits for mortgage rates to decrease home prices continue to increase. Prices have come back to a normal rate of appreciation, but home prices almost always increase. This is because property really never loses value. There have been very few times where home prices fell and when they did it was not for long. Waiting for mortgage rates could end up being a wash because home prices will be higher once mortgage rates hit that ideal spot.  

The best strategy for a homebuyer is to look over their finances to determine their home affordability. Sit down and look over your income vs. your expenses. Start with your monthly income after taxes and then deduct every expense that will carry over when you purchase a new home, items like car payments, credit cards, internet, etc. This will leave you with how much money you can put toward a house payment. If you have the ability to afford a home right now, then right now is the time to buy one. Waiting for a lower rate seems ideal, but it might not be when the rate finally gets there.

If you are considering the purchase of a Punta Gorda home, the only thing that should dictate that decision is your need for that home and your ability to afford the home. If you are ready to purchase your next home, I am here to help. I would love to help you start the home-buying process and make it as stress-free as possible. Contact me any time with any Punta Gorda real estate needs. 

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