Whether you’re already a real estate enthusiast or consider yourself more of a newcomer to the scene, the buzz around high interest rates lately has been hard to avoid. And while typical discourse would have you believe that it’s best to wait for rates to go down, the truth is that there can be just as many benefits to buying now.

Keep reading to learn why buying a home while interest rates are high might be the right move for you!

#1 The Potential For Lower Housing Prices

Higher interest rates typically have two effects on the housing market: They price some buyers out of the market, and they typically have the power to put downward pressure on housing values.

One caveat to keep in mind? Despite steeper mortgage interest rates, housing inventory remains limited, which means some sellers are choosing to stay put so they can hold onto their low locked-in rate, while new home construction continues to be negatively impacted by supply chain issues, rising costs, and labor shortages.

#2 Immediate Ownership

By purchasing a home sooner rather than later, you can start building equity right away. This can be advantageous if property values are expected to rise, as you’ll benefit from potential appreciation over time.

Do you have more questions about buying a home in DC? Read these posts next:

• Today’s Top Real Estate Scams and How to Spot Them
• Existing Home Vs. New Build: Which is Right For You?
• Signs the Market is Good For Buyers

#3 Less Competition

When interest rates are high, there may be fewer buyers in the market, therefore reducing competition for sought-after homes. This shift can give you more negotiating power and potentially lead to a better deal on the purchase price.

#4 A Potential Flood Of Buyers

Conversely, since challenges regarding high rates have led many buyers to wait on the sidelines, once rates do fall, we anticipate a rush of buyers that could cause inventory to fall further while home prices rise.

#5 Less Risk

To protect the buyer, certain contingencies can be added to the purchase agreement, which must be met for the sale to go through. The good news? When interest rates are high and there’s less competition for homes, buyers have more leverage to include the contingencies they need to protect themselves financially and feel comfortable with their offer at the same time.

#6 Locked-In Rates

When interest rates are high, securing a fixed-rate mortgage can provide a sense of stability and financial security. With a fixed-rate mortgage, your interest rate remains unchanged throughout the life of the loan, regardless of market fluctuations. This means that even if interest rates continue to rise, your monthly mortgage payments will stay the same, offering protection against potential future financial stress.

#7 More Investment Potential

This probably goes without saying, but real estate can be a solid long-term investment. By buying before rates go down, you may have the opportunity to capitalize on potential property appreciation and rental income today — instead of holding out for tomorrow.

Of course, at the end of the day, the main factors that should be taken into account when deciding when to buy is your distinct financial situation, market considerations, and long-term goals.

Not sure where to start? We’re here for you every step of the way. Get in touch today by email at jsmira@jennsmira.com or call us directly at 202.280.2060.