We've been renting for 5 years and have enough saved for a down payment, but mortgage rates are hovering around 6.5-7% in our area. Everyone keeps saying to wait for rates to drop, but housing prices keep climbing too. Should we just bite the bullet and lock in a rate now, or keep waiting?
Don't wait around expecting rates to magically drop while hoping prices stay put - that's not how it usually works, and you could end up chasing both moving targets indefinitely. The real question is whether you're ready to own a home in your area at today's prices with today's rates, not whether conditions might be theoretically better next year. If you plan to stay put for several years and can comfortably afford the monthly payment at 6.5-7%, locking in now gives you stability and builds equity instead of padding a landlord's pocket. But if those rates would strain your budget or you're not settled on the location, waiting makes sense regardless of what the rates might do.
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