As the real estate market in the Tampa Bay area continues to heat up, many potential home buyers may be tempted to wait for mortgage rates to drop even further before making a purchase. However, it’s essential to consider that waiting for the “perfect” interest rate could end up costing you in the long run.
While it’s true that current mortgage rates are still relatively low compared to the historical average, with the 30-year fixed mortgage rate at 6.09% and the 15-year fixed mortgage rate at 5.27%, experts predict that rates could climb even higher in the coming months. This might seem like a disadvantage at first, but buying in a higher interest rate environment can also have its benefits. By getting a mortgage at a higher rate, you may get a lower principal amount, which can help you refinance the loan to a lower rate with a lower principal in the long term.
Another factor to consider is the tight inventory in the Tampa Bay area, as demand for housing continues to outstrip the available supply. This is causing home prices to rise, which could offset any savings from a lower interest rate.
It’s also important to remember that buying a home can be time-consuming, so waiting for the “right” time to buy could mean missing out on the opportunity to purchase a home.
The current interest rate is one of many factors to consider when buying a home. So, while waiting for mortgage rates to drop may be tempting, weighing the potential benefits against the risks is essential. Working with a local real estate professional, and getting pre-approved for a mortgage, can help you decide when the time is right for you to buy a home in the Tampa Bay area.