Chris  Schmidt
Chris Schmidt
Owner/Broker

Should I Wait for Interest Rates to Come Down Before Buying a Home in Houston?

Buying a home is one of the biggest financial decisions you’ll ever make. With mortgage rates at their highest levels in over a decade, potential Houston homebuyers are facing a tough dilemma – should they take the plunge now or wait in hopes that rates will come back down? In this blog post, real estate expert Chris Schmidt and the professionals at Your Home Sold Guaranteed Realty - Chris Schmidt Team discuss whether you should wait for interest rates to come down before buying a home in Houston.

Related Content: Will 2024 be a good time to buy a house in Houston?

Key Takeaways:

  • Current 30-year mortgage rates are around 7.18% as of June 2024, nearly double what they were just a year ago.
  • Some experts predict rates will start decreasing in late 2024 as inflation cools and the Fed cuts rates.
  • Waiting for lower rates could save you significant money over the loan’s lifetime, but home prices may continue rising.
  • Houston has several down payment assistance programs available to make buying more affordable now.

The Case for Waiting for Lower Rates

The average 30-year fixed mortgage rate has skyrocketed from around 3% in early 2022 to over 7% today. For a $300,000 home with 20% down, that equates to a monthly payment difference of nearly $700 at today’s higher rates.

Most housing economists expect the Federal Reserve to begin lowering rates in late 2024 or early 2025 as inflation comes under control. Mortgage rates typically follow the Fed’s lead. Waiting just 6-12 months for a potential 1% rate drop could save you tens of thousands over a 30-year mortgage.

The Argument for Buying a Home Now

While the high interest rates are painful, there’s also the cost of waiting to consider. Home prices in Houston jumped over 10% in 2023 and are forecasted to rise another 5-7% in 2024 amid limited inventory. If you wait a year, the higher prices could potentially wipe out any interest savings for years to come.

There’s also the opportunity cost of delaying your home purchase goals like building equity, locking in monthly costs, and benefiting from future appreciation to weigh. Life circumstances like job changes, growing families, or investment goals may make buying now the wiser choice depending on your situation.

Down Payment Assistance Programs in Houston

For cash-strapped buyers struggling with the affordability crunch, Houston offers several down payment and closing cost assistance programs that can make buying a home more achievable:

  • Your Home Loan Down Payment Assistance Program: Don’t Have a Big Down Payment? Purchase Your Home With 1% Down. You put 1% down and your lender pays an additional 2% for a total of 3% down. Call or Text Chris Schmidt at 713-322-5604 To Learn More.
  • Houston Housing and Community Development Down Payment Assistance Program: Provides up to $23,500 in down payment and closing cost assistance for borrowers below 80% area median income.
  • GSML Down Payment Assistance: Provides a grant for down payment and closing costs for lower-income borrowers buying in certain areas.
  • Wells Fargo NeighborhoodLIFT program: Offers $17,500 in down payment assistance for qualified Houston borrowers.
  • Good Neighbor Next Door: Provides 50% off listing prices for homes in revitalization areas for teachers, law enforcement, firefighters, and EMTs.

These programs and others can be combined with low down payment mortgages like FHA, VA, and conventional 3% down loans to make buying in Houston more affordable despite high rates.

Related Content: Mortgage Loan Process – A Guide For Houston Homebuyers

The Bottom Line: Call Chris Schmidt to Analyze Your Individual Situation

Your Home Sold Guaranteed Realty - Chris Schmidt Team. Should I Wait for Interest Rates to Come Down Before Buying a Home in Houston?
Chris Schmidt

Whether you should wait for interest rates to come down or buy a home now in Houston is a highly personal decision. It depends on your financial situation, how long you can wait, and what’s most important to you.  

If you’re feeling stuck and need an expert real estate professional in Houston to break down your options, call or text Chris Schmidt today at 713-322-5604. Chris can help analyze whether buying now makes sense for your goals, locate down payment assistance programs, and find great homes in high-appreciation areas of Houston. Make an informed decision with Chris as your trusted advisor.

To Discuss Your Home Sale or Purchase, Call or Text Today and Start Packing!