When Is The Best Time To Buy A House? 2022 Or 2023-2024?

Buying a home might be your dream, but considering the market and what kind of loan you can get should also be on your mind. The housing market has been fluctuating for the past couple of years, and with interest rates for loans higher than what they've been in years, you might wonder if you should buy now or wait a couple of years in hopes that the housing market and rates on loan will be more favorable to the buyer. Here's a general overview of what you can expect in 2022 in terms of buying a house.

Interest Rates

One of the most important things you should consider when buying a house with a loan is the interest rates. In December of 2021, the interest rate was hovering around about 3.11%, but in recent months, it has increased to slightly under 6%. If you look into getting a loan right now, you'll end up paying significantly more than what you would expect to pay several months ago. As an example, if you got a loan for $300,000 at an interest rate of 3.11%, you could expect to pay $161,923 in interest over the course of a 30-year loan. But if you get a loan for $300,000 at an interest rate of 5.47%, you can expect to pay $311,578 in interest for a 30-year loan. Additionally, experts are forecasting that rates are going to continue to increase to over 6% by the end of 2022.

Is 2022 the Right Time to Buy?

The question remains whether 2022 is the right year to buy or whether you should wait until 2023 or 2024. It's easy to understand why saving potentially hundreds of thousands of dollars on the interest on a loan is appealing and even completely necessary, but you might also want to know if this is the only factor to consider.

Amidst the rising interest rates is also a greater number of available homes. But this doesn't mean that home inventory is anywhere near what it was in past years. In fact, the inventory is still only about two-thirds of what it was in June of 2020 and compared to 2019, the inventory is less than half, making it more of a seller's market.

You also need to consider the availability of financing. Refinancing and getting a new mortgage might be out of reach for many people because loan availability is shrinking. So if you're someone with credit that isn't ideal, it might be harder to get one of the fewer available loans.

When you want to get the right home at a price and interest rate on the loan that you can afford, you might want to wait for a while. When you're searching for homes for sale in Dallas, you should consider what kind of loan you can get as well as home availability. Refinancing at another time might be possible later, but you should consider the costs and your personal situation to determine what's going to be best for you.