Most financial experts agree that that the Fed needed to to something to curb inflation. Most experts believe the Fed was late to the party and as a result, they raised rates too fast in too short of a time frame. And now some of the most respected economists believe the Fed is over-correcting and will be forced to pull back in an effort to quickly undo the constraints that are starting to choke some segments of the economy.

The big question is "When will the Fed reverse course?" Before the end of this year? Before the second quarter of 2023? By the end of 2023?

Real estate agents have been watching buyers pay tens of thousands...to six figures above list price to secure homes.

Now buyers have the opportunity to trade overpaying for a house by paying $500 or $1000 or $2000 more per month for a higher interest rate than they would like. And THAT is scary?

I'd put money on a bet that interest rates will be at a refinance-able place in less than a year.

Months ago, I said, "Marry the house, date the rate."

It is critically important that we inject important perspective when we can as real estate professionals.

I have been licensed to sell real estate since 1988. In that time, I have seen prices escalate beyond my imagination, which I am convinced with always be a truth about real estate over time. The value of houses always goes up over time.

As for rates, I think the highest I've ever seen them as a professional was just under 9%. And the lowest rates I've ever seen have been over the past 5 years. Rates go up. Rates go down. You can surf the interest rates as a homeowner. But you can't surf if you don't own a home.

I've made money on every home that I felt I overpaid for. And there hasn't been a home I've owned that I haven't refinanced at least one time to take advantage of lower rates and lower payments.

And the answer to the question, "When is the best time to buy a house?" has always been "Five years ago." And that will likely be the answer 5 years from now.

House values are temporary, and typically go up. Interest rates are temporary, and they constantly cycle up and down and up and down. The price you pay for a house is the price you pay. It's not temporary. It's forever. The interest you pay can be changed along the way.

Buy the house. Surf the rate.

If one could stomach paying above list price, covering appraisal gaps and waiving inspections and contingencies, why in the world would someone not pay a higher monthly payment (for a while) in exchange for not having to over pay for a house?

Overpaying for a house is forever; overpaying for a rate is not.

Courtesy of Shawn Rawls via Lab Coat Agents 9/28/2022