Why Now Is a Good Time to Buy a Home

The spring homebuying season has started slowly this year, with elevated mortgage rates, high home prices, and economic uncertainty making many wonder: Is now a good time to buy a home?

The answer is yes. Here's why.

Waiting for lower rates can actually cost buyers more. When rates drop, competition increases, pushing home prices higher. Industry estimates suggest that every 1% decline in rates brings 5 million more eligible buyers to the market.

Delaying a purchase also means missing out on significant appreciation gains that could exceed any savings from lower interest rates. Leading industry experts like Cotality (formerly CoreLogic), Case-Shiller, and MBS Highway all forecast continued real estate appreciation for the foreseeable future.

In fact, Cotality recently increased their 12-month appreciation forecast to 4.9%, up from their previous 4.2% projection.

This underscores why homeownership builds wealth effectively. For perspective: a $500,000 home appreciating at 4% gains $20,000 in value in just one year – an excellent return on investment.

Recent construction data further supports strong home prices. April's Housing Starts showed an annual rate of just 1.36 million new homes, significantly below the 1.8 million average annual household formations over the past five years. Even with completions at 1.46 million annually, housing supply isn't keeping pace with demand, which should continue supporting home values.

Bottom line: Homeownership creates significant wealth for your family and represents a strategic move toward securing your financial future.

Want to access insightful market analysis like this every day?

An MBS Highway membership equips you with powerful business-building tools at your fingertips. You'll gain immediate access to our suite of client conversion resources – including the Bid Over Asking Price calculator, Buy vs. Rent Comparison, Loan Comparison tool, daily coaching videos, and timely lock alerts.

Try MBS Highway free for 14 days and see firsthand how our resources can help you grow your business and seize upcoming market opportunities.

By The MBS Highway Team