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How To Buy Your First Home In Today’s Housing Market

Buying a Home

Jeff Owens, Indiana REALTOR pictured against a gray background Posted by: Jeff 11 months ago

Are you a first-time home buyer wondering if now is the right time to buy your first home? Let me say…YES, IT IS!  Now is a great time to buy your first home. I’m sure you’ve seen conflicting information online about when you should buy a home, so please consider the following:

The real estate market really does vary depending on where you live. Since I work with first-time home buyers in Kosciusko County and the surrounding areas, I can show you what works for your unique situation.

1. Don’t Fear The Mortgage Rate

Interest rates are trending higher than they have been in recent years, but aren’t anywhere near historically high. In fact, according to Freddie Mac and its weekly survey, mortgage rate variance through the year’s first seven months is three-quarters of a percentage point, which means 2023 is among the most stable years for mortgages in the past 50 years.

You can always refinance your mortgage if rates drop in the future (which they’re likely to do), and purchasing your first home now means you don’t risk other buyers purchasing the home you’ve had your eye on while you wait.

Pro Tip: Refinancing makes sense at even just a 1% rate drop because it can still have a significant positive impact on your mortgage payments.

2. Don’t Risk Losing The Right House For You

When the right home for you comes on the market, do you want to risk losing it because interest rates are slightly higher than you’d like? Opportunity, when it knocks, doesn’t care about interest rates.

Locally, here in Kosciusko County, prices are still going up. In fact, prices are up 7% over last year.

This fact alone makes waiting for that slight projected decrease potentially a losing game.

When you risk losing the house that you want (and while you save interest) you also lose by paying more to someone else, rather than banking that appreciation for yourself.

3. Current Mortgage Rates Are More Affordable Than Rent

This is true nearly everywhere in the United States. Mortgage rates, even when on the higher end, are still much more affordable than paying rent each month.

For example, the average monthly rent for homes and apartments in Kosciusko County ranges from $795 – $2,995 depending on the size and location.

The average mortgage payment in the same county is often even lower than $800 per month depending on your credit score, mortgage terms, and the size of the house you own.

Not only that, homeowners save additional money when you account for appreciation and principal reductions.

Renting a home or an apartment can be a viable short-term solution, but you always stand to lose more money to your landlord in the long run.

Ready To Own Your Own Home?

Successful first-time home buyers, seek out an experienced real estate agent like myself.

I’ve been working with home buyers for 44 years in Kosciusko County and the surrounding areas. You won’t find a better agent to help you navigate the buying process!