Interest Rate Hikes Lead to Questions
With yesterday’s news that the Federal Reserve (aka the Fed) may raise interest rates again, many homebuyers may be considering what their next move is.
Do they continue to house hunt?
Is now still the right time to buy a home?
Should they leap at the next house that becomes available?
Since buying a home is a big decision, these questions are always swirling. However, with the current housing market, they are more commonplace. One thing is certain, homebuyers should not panic. Panic leads to mistakes. The market always has its ups and downs, but any decision made should be based on the day-to-day needs of the prospective homebuyer.
Today’s blog post from Realtor.com, “The Massive Mistake Homebuyers May Be Tempted To Make Right Now: Is This You, Too?,” highlights concerns buyers have; especially when the market is unpredictable.
Example of Buyer Mistake
The post shares the story of buyers that put their housing search on hold. Their thought was prices would come down, but instead prices continued to rise. They inevitably panicked and purchased the home they were renting, even though it was too small and the layout didn’t suit their family. This is considered “FOMO buying” by an agent with Pacific Sotheby’s International Realty in San Diego. Fear of missing out should not be the reason to purchase a home…ever.
As Realtor.com’s Chief Economist Danielle Hale notes, “It is not a good idea to try to time the market. No one has a perfect view into the future. Whether you think rates or prices are going up or going down, the world may not evolve the way you expect it to. We all have to make decisions with that uncertainty.”
If you are in the market to buy a home, you’ll want to read through this post. Next step, meet with a realtor in the area of your home search. They will be able to guide and advise you to make the best decision based on your needs alone; not the ups and downs of the housing market.