Addressing Interest Rates—Why Now is Still a Good Time to Buy

Throughout the past few months, the ever-changing housing market has undoubtedly created a frenzy for buyers and builders across the nation. With increased interest rates, 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 Elliott Homes, our experienced team knows the industry through and through. 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 high?

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.

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 significant 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 6-7%—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.

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 generational 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 home buying 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 Elliott Homes, our trusted preferred lenders offer 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, new-construction community in Sacramento, Phoenix or Yuma from Elliott 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 Elliott Homes. Our experienced 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 benefits that come from purchasing and owning your own home will never fade.

At Elliott Homes, we’ve worked with countless homeowners throughout the great cities of Sacramento, Phoenix and Yuma, and with over 100 years of experience, you can trust that we’re giving you the best homebuying experience out there—even with the changes in the market. If you’re ready to start the exciting journey to your forever home, be sure to browse through our available homes and our top-rated communities throughout California and Arizona—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 (866) 984-1300 in Sacramento, (928) 304-7275 in Yuma or (480) 831-9200 in Phoenix, or contact us online at any time.