Many potential ICI Homes customers buy homes via mortgages, so when they’re eyeing a new custom Florida home, they’re probably noting the Federal Reserve’s decisions on interest rates.
Recent rates have hovered around 6.5 percent, roughly doubling since the ultra-low, COVID-19 pandemic-era rates. Since then, the residential real estate market also has normalized due to economics, inflation and other factors.
But don’t let interest rates stop you. We at ICI Homes suggest acknowledging them, then doing what’s best for you. And we’re here with tips to help you stay the course.
Key Takeaways
- Interest rates are only one part of the homebuying decision and should not be the sole factor in determining when to buy.
- Buying when you’re financially and personally ready allows you to start building equity instead of continuing to rent.
- Builder incentives, preferred lender programs, and future refinancing opportunities can help make homeownership more affordable.
- Preparing your finances, researching communities, and understanding your options puts you in a stronger position whenever you’re ready to buy.
You must move
Sometimes life intervenes and you have to seek a new custom Florida home due to work, family or personal reasons. Real life, right?
When that happens, finding a new home and community in a timely manner usually takes precedence over waiting for mortgage interest rates to drop.
You want to move
Done living in parents’ basements, with roommates, or a too-small, inconvenient abode?
Whether you’re tired of renting or need a bigger home, these also are valid reasons to move when you’re ready, rather when interest rates decline.
It’s always a beneficial move to own
Buying a home allows you to establish equity in what likely is your largest physical asset.
Instead of making monthly rent payments to someone else, monthly mortgage payments build equity and value for you, no matter your interest rate.
This gives you the security of knowing that while the cost of everything else might go up, your monthly mortgage payments won’t.
Plus, if interest rates drop down the road, you likely can re-finance your existing mortgage, lowering your payments and continuing building valuable equity.
Waiting rarely pays off
Only the Federal Reserve knows when interests rates will rise or fall.
Waiting for a half-percentage drop might mean staying stuck indefinitely. Waiting also can mean competition if rates do drop. Buyers playing the same waiting game jump back in the market, vying for the same lower rates, homesites and homes.
Buying when you’re ready also gives you an opportunity to negotiate the best possible interest rate, which any reputable mortgage lender will do. And if you’re eligible for specific loan discounts as a first responder, veteran, or teacher, for example, take advantage.
Also check out current ICI Homes builder incentives, which might include rate buydowns with our preferred lenders, and special pricing on certain inventory homes, homesites or design credits. All of those can help lower the cost of home buying, any time.
Waiting might pay off if you’re not ready
Have financial homework to do? Debt to shed?
Use the waiting game to bolster your economic health and down payment, and to do research by visiting ICI Homes’ master-planned communities and model homes remotely or in-person.
When rates drop, all that effort will ready you to become a homeowner.
Ready for your new custom Florida home? Talk to ICI Homes here.