Spring and summer tend to be the busiest seasons in real estate. With homes hitting the market and buyers eager to make a move, many people are wondering: Is now the right time to buy, or should I wait for interest rates to drop?
To get some expert insight, we sat down with Arnold Martin, owner of Absolute Mortgage Lending and a TrustDALE Certified Partner, to talk about mortgage rates, the pros and cons of homeownership, and what you should consider before making a decision.
When Will Mortgage Rates Drop?
If you’ve been holding off on buying a home, hoping for lower interest rates, you’re definitely not alone. The big question is: How long will we have to wait for rates to come down?
According to Martin, most economists expected rates to decrease sooner, but inflation and housing demand have kept them higher than anticipated. The good news? He predicts we’ll see some rate drops later this year, though it’s hard to say exactly when or by how much.
That being said, today’s rates aren’t as extreme as they seem—at least not historically. Back in the 1970s, mortgage rates skyrocketed past 14%, which makes today’s numbers feel much more reasonable in comparison.
Buying vs. Renting: Which Makes More Sense?
For years, the rule of thumb has been that buying a home is better than renting—but is that still true in today’s market?
Martin says yes. Here’s why:
- Predictable Costs: A fixed-rate mortgage means your monthly payment stays the same, unlike rent, which can increase every year at your landlord’s discretion.
- Building Equity: Homeownership helps you build wealth over time. In Georgia, home values have been appreciating by 10% or more per year in recent years.
- Tax Benefits: Homeowners can deduct mortgage interest from their taxes, which could mean a lower tax bill or a bigger refund.
- High Rental Costs: Georgia’s rental prices are among the highest in the country. In many cases, a mortgage payment is equal to or even lower than rent.
Of course, renting still has its place—especially if you need flexibility or aren’t financially ready for homeownership. But if you plan to stay put for a while, buying is typically the better long-term investment.
What to Consider Before Buying a Home
If you’re thinking about taking the leap into homeownership, here are a few important factors to keep in mind:
1. The Cost of Buying vs. Renting
A big misconception about buying a home is that you need a huge down payment—but that’s not necessarily true.
- The average homebuyer puts down just 3-5% of the purchase price.
- Many down payment assistance programs (offered by states, cities, and counties) can help first-time buyers cover the upfront costs.
- In some cases, buyers can secure a mortgage with zero down by combining assistance programs with family gift funds.
2. Location, Location, Location
Where you buy can make a big difference in your home’s future value. Homes in desirable neighborhoods—especially those in top-rated school districts—tend to appreciate faster.
Even if you don’t have kids, buying in a good school district can mean a better investment and stronger resale value when it’s time to move.
3. Credit Score & Pre-Approval
One of the biggest factors influencing your mortgage rate is your credit score. A higher score can unlock:
✅ Lower interest rates
✅ More loan options
✅ Smaller monthly payments
Martin recommends monitoring your credit and improving it before applying for a mortgage. He also suggests getting pre-approved before you start house hunting. A pre-approval letter helps you:
- Know your budget ahead of time
- Make stronger offers (sellers prefer pre-approved buyers)
- Speed up the closing process once you find the right home
Some lenders, like Absolute Mortgage Lending, even offer free pre-approvals—which can give you a serious edge in a competitive market.
Final Thoughts: Is It the Right Time for You?
While it’s tempting to wait for interest rates to drop, holding off isn’t always the best strategy.
Right now, fewer people are buying homes, which means less competition for buyers. That could give you an opportunity to negotiate a better deal—something that might be harder once rates drop and more buyers jump back into the market.
If you’re financially ready, now could be a smart time to buy. The key is to educate yourself, explore financial assistance options, and get pre-approved so you’re ready when the right home comes along.
Thinking About Buying? Here’s What to Do Next
1. Check your credit score and take steps to improve it if needed
2. Look into down payment assistance programs—you may qualify for thousands in help!
3. Get pre-approved with a trusted mortgage lender
Want to learn more about local Atlanta consumer protection and investigations? Visit Trustdale.com.