Breaking Down the Interest Rates: Why It’s Still a Good Time to Buy a Home

As of lately, the ever-changing housing market has undoubtedly created chaos and disorder for buyers and builders across the country. With mortgage interest rates on the rise, and the demand for homes continuing to climb even higher, it’s no surprise that there is a common misconception that buying a new home right now is unattainable and unrealistic for the majority of people. 

At Gemcraft Homes, our experienced team knows the industry incredibly well-. We understand how important the decision to purchase a new home is—and with the uncertainty that the market can sometimes bring, we want our customers to feel as comfortable as possible in order to make the best decision for them and their families. Continue reading to find out more about the current interest rates and why now is still a good time to buy a home.

Why are interest rates rising?

Since the pandemic, the housing market has been highly competitive throughout the country, as a number of individuals were either looking to move out of the crowded city areas and into a slower-paced environment, or they were simply looking to move into a larger home in order to accommodate the new requirements we needed our homes to meet—such as a home office, additional bedrooms or a tight-knit community atmosphere. This skyrocketing demand quickly led to increased prices to address inflation—and it doesn’t appear that this buyer demand will slow down anytime soon. 

With that in mind, waiting for the market to drop back down might not be realistic if you’re hoping to move into a new home soon—but it’s important to know what you can afford and how to overcome these rising rates as a buyer. 

Why it’s still a good time to buy

Buying a new home—in any market—is likely the biggest investment you’ll ever make and a  highly personal decision. With a purchase this big, it’s crucial to understand the current market conditions and the misleading headlines about soaring rates being higher than ever before. Although mortgage interest rates have certainly increased in the past few months, they’re still considerably low compared to historical records. According to forbes.com, the current mortgage rates—which are around 5-6%—are still well below where they’ve been at any point before 2009. In the 1990s, rates ranged between 7% and 9%, and in the 2000s they typically fell between 5% and 7%. With this in mind, locking in at a favorable rate now can help you buy a home before properties increase in value and become even more expensive—so it’s best to get ahead of the next wave and jump the gun on any top-quality, remarkable homes you may come across before they’re gone.

Additionally, homeowners are making a smart, long-term investment and increasing financial stability by making the decision to purchase a home right now—specifically in the categories of building wealth, equity and an overall thoughtful financial decision for their future. The fact is—trying to time the market or predict what might happen next year is not the best homebuying strategy. Instead, it’s better to buy based on your budget and needs, which means if you come across a home you love in a great area that aligns with your budget and checks off all of your boxes—then it’s best to take the leap and buy it now. 

How to overcome the rates

If you’re in the market for a new home or if you’ve found the home of your dreams, but are hesitant due to mortgage rates, there are a number of ways to help you overcome any setbacks and guide your decision in buying. This includes improving your credit score, working with a trusted mortgage expert, qualifying for the right loan product for your financial situation and making a larger down payment if possible. Additionally, in the midst of the market chaos, it’s important to work with a builder with flexibility and versatility. At Gemcraft Homes, our approved lender offers an array of mortgages for all types of homebuyers—and we truly believe that everyone deserves a chance to purchase the home of their dreams.

All of these things can play a huge role in beating the interest rates in today's market, but above all—it’s important to never settle and not let the high numbers and headlines deter you away from purchasing the home you've always envisioned. If you can afford the payment, it’s best to buy the perfect home for you and your family sooner rather than later—especially in a widely-recognized community from Gemcraft Homes.

Choose a trusted builder

With the pressures and uncertainties of buying a new home in today's market, it’s essential to choose a trusted builder who is dedicated to exceeding the expectations of every single customer—and there’s no better builder to trust than Gemcraft Homes. Our team specializes in helping our customers find their ideal dream home that fits their wants and needs, and we make it our mission to provide everyone that walks through our doors with the utmost care and comfort in purchasing a new home. The housing market is constantly changing, but the emotional and financial benefits that come from purchasing and owning your own home will always remain at the forefront of our values. 

At Gemcraft Homes, we’ve worked with countless homeowners throughout the great states of Maryland, Pennsylvania, Delaware, West Virginia and Virginia, and with over 25 years of experience, you can trust that we’re giving you the best homebuying experience out there—even with the constantly-changing market. If you’re ready to start the exciting journey to your forever home, be sure to browse through our quick move-in homes and our incredible communities—and for any questions or additional information about purchasing or financing a new home, we’re just a phone call away, so don’t hesitate to give us a call at 800-291-7436 or contact us online at any time.