Most homeowners or potential buyers face the question of whether they should wait or buy their new house now. They attempt to predict if the value of the home is rising or falling, along with the mortgage rates. These metrics are considered important in determining whether it is the right time to buy a house.
While keeping these factors in mind is important, it is also true that the right time to buy a house is whenever you can afford to do so. You should be personally and financially ready to purchase a house. So, if the question “When Is The Right Time To Buy A House?” is still haunting you, this blog will help you make the right decision.
Should You Wait or Buy a Home Now?
Mortgage rates are still rising, which makes homeowners wonder if they should buy a house or wait. As of the week ending June 12, the average annual percentage rate (APR) for a 30-year fixed mortgage was 6.94%. That figure is just 0.01% lower than the previous week but 0.10% higher compared to the same time last year.
| Notes | One basis point = 0.01% |
Mortgage Type APR
30-Year Fixed Mortgage 6.84%
15-Year Fixed Mortgage 5.93%
5-Year Adjustable 7.12%
Is Now a Good Time to Purchase a Home?
If you can answer YES to these questions, you can consider buying a house now -
Do You Have a Good Credit Score?
Before you go hunting for your dream home, consider checking your credit score. If you have a good credit score, you’ll have the best available deal. As per the Federal Reserve Bank of New York, the median score for new mortgage applicants in the first quarter of 2025 was notably high (ranging from 750 to 800). A low-risk borrower is usually eligible for the lowest mortgage rates.
Have You Saved Enough for a Down Payment?
If you have a good credit score, you must also have a good amount of money for a down payment. The more you pay upfront, the less you’ll borrow, which means you’ll have less interest to pay. Having extra cash in hand offers a financial cushion in case something unexpected happens.
Will You Stay at Home for a While?
In addition to the cost of buying, purchasing a home has several closing costs, which can add up to thousands of dollars. To ensure that these investments are worthwhile, it is important for homeowners to be fairly confident that they won’t be moving anytime soon. It is crucial to be in a strong financial position or rent out if needed. This is because selling the house soon after you purchase can have a huge tax implication.
Are the Interest Rates Dropping?
If you see the rate of interest dropping, it may be the perfect time to purchase a house and lock it in at a lower interest rate. Even a small reduction in the interest rate can help you save big on your loan.
Should You Wait to Buy a House?
Here are three instances when you must wait to buy a house, at least for a while -
Are the Values of Homes in Your Region Dropping?
The overall median home price may be rising, but some regions still have lower prices. It is wise to wait as the prices still could get lower, which can help you save a few hundred or thousands of dollars.
Are You Financially Stable?
If you already have a debt or you don’t have enough savings for a down payment, it is better to wait and work on your financial portfolio. This is because a strong financial portfolio can help you get better mortgage terms, which help in reducing the cost of purchasing a home.
Are the Interest Rates Rising?
Higher rates of interest can increase the amount of the loan and the mortgage payments. If the interest rate in your region is spiking, it is advisable to wait until it is steady or starts dropping.
If You’re Ready - Buy Now!
Don’t wait for the right time, as there is none. If your financial condition is great, you don’t have to think about other factors. The market is always moving, but if you’re ready to buy a house, then you must not waste your time looking for the right time.
