{"blocks":[{"type":"header","data":{"text":"Key takeaways","level":2}},{"type":"list","data":{"style":"unordered","items":["The housing market has become more friendly for homebuyers recently, but even so, many prospective buyers are sidelined by record-high prices.","If your credit score is strong, your employment is stable and you have enough savings to cover a down payment and closing costs, buying now can still be a smart move.","But if your personal finances are not ideal at the moment, or if home values in your area are on the decline, it might be better to wait."]}},{"type":"paragraph","data":{"text":"Buy now, or wait? That’s the question prospective homeowners have been struggling to answer as home prices keep skyrocketing and rates keep rising."}},{"type":"paragraph","data":{"text":"So, is it a good time to buy a home? Or is it better to wait on the sidelines, in the hopes that either prices or rates see a significant drop soon? The combination of high home prices and mortgage rates has led many would-be buyers to pick the “wait” side of the equation, but these considerations can help you determine the way forward."}},{"type":"header","data":{"text":"Is now a good time to buy a house?","level":2,"anchor":"buy-now"}},{"type":"paragraph","data":{"text":"No matter which way the real estate market is leaning, buying now means you can start building equity immediately. It also means avoiding the potential for mortgage rate fluctuations later: Rising rates can wreak havoc on your monthly budget, and they also result in paying more in interest over the life of the loan."}},{"type":"paragraph","data":{"text":"While they have backed off from the high of 8% hit in late 2023, they’re still elevated. Currently, mortgage rates are at their highest level in more than 18 months, with the 30-year fixed rate averaging 7.08% as of late September, according to Bankrate’s weekly survey of large lenders."}},{"id":"c3wv4xxh-ti3t2o3v","type":"embed","data":{"service":"e.infogram.com","source":"https://e.infogram.com/a622ecd0-c3c4-4311-9502-abbdd28ac297?src=embed","embed":"https://e.infogram.com/a622ecd0-c3c4-4311-9502-abbdd28ac297?src=embed","caption":"","height":"600","width":"100%"}},{"type":"paragraph","data":{"text":"Home prices are also sky-high, with NAR’s data reflecting 38 consecutive months of year-over-year increases. The median sale price of an existing home in the U.S. was $429,100 in August 2026 — the highest August price ever recorded by the National Association of Realtors (NAR). Together, these factors might dissuade you from buying right now, and that’s understandable."}},{"type":"paragraph","data":{"text":"On the bright side, housing inventory is finally expanding a bit. There were 1.62 million homes for sale at the end of October 2025, marking the first time since November 2019 that inventory exceeded 1.6 million units, NAR says. That represented a 4.9-month supply of unsold inventory, up from 4.6 months in July 2026 and 4.6 months in August 2025."}},{"type":"paragraph","data":{"text":"If you’re ready to buy and you find a place you want to call home, pull the trigger. Timing the market is nearly impossible, and over the course of the 5 to 10 years you own the home, you’re likely to recoup your investment."}},{"type":"paragraph","data":{"text":"Whenever you buy, don't overpay for the loan"}},{"type":"paragraph","data":{"text":"Bankrate research finds 87% of Americans overpay for their home loans. For the typical borrower, that adds up to $3,343 in extra costs each year. Don’t settle for the first offer — be sure to shop around."}},{"type":"header","data":{"text":"How to know if you should buy a house or wait","level":2,"anchor":"know"}},{"type":"paragraph","data":{"text":"Ultimately, the decision of when to buy a home is up to you, and it hinges on highly personal factors — the birth of a child, job changes, divorce, a death in the family. Life goes on, whether the timing is perfect or not. These questions can help guide your decision if you’re anxious to become a homeowner and start house-hunting."}},{"type":"list","data":{"style":"ordered","items":["How is your credit? Before you start house-hunting, check your credit score. If you have demonstrated that you are a low-risk borrower with a history of on-time payments, you’ll be in line for the lowest mortgage rates a lender offers.","Have you saved enough for a down payment? In addition to paying your bills on time, you should be sitting on a sizable chunk of change for a down payment. The more you can pay upfront, the less you’ll have to borrow (and so the less interest you’ll have to pay). You should also consider closing costs and other mortgage-related expenses","Are you able to afford homeownership? More goes into the cost of owning a home than just the mortgage payment. You’ll need to be sure you can afford insurance costs, property taxes and any maintenance or emergencies that inevitably pop up along the way. ","How long are you planning to stay in the home? Beyond the purchase price, buying a home comes with closing costs that can run thousands more. So, to justify those one-time transaction costs, it’s wise to be reasonably certain that you won’t move again anytime soon — or that you’ll be financially stable enough to hold on to the property and rent it out. Selling a home very soon after buying can have serious tax implications.","Are home values in your area dropping? The country’s overall median home price may be soaring to new heights, but some individual areas have still seen price declines. Such declines may not be done yet, so it could pay to be patient for a bit longer.","Is the inventory in your area increasing substantially? When there are more properties on the market to choose from, buyers enjoy more bargaining power. Many areas have seen a jump in inventory recently, which certainly helps."]}},{"type":"paragraph","data":{"text":" Limited spots available "}},{"type":"header","data":{"text":" Help us shape the future of personal finance","level":3}},{"type":"paragraph","data":{"text":"We’re building something new to make rate shopping smarter and simpler. Join our waitlist to get early access, share your feedback, and unlock exclusive offers."}},{"type":"paragraph","data":{"text":"Priority rate alerts"}},{"type":"paragraph","data":{"text":"Exclusive member offers"}},{"type":"paragraph","data":{"text":"Time saving"}},{"type":"paragraph","data":{"text":" Please provide a valid email address "}},{"type":"paragraph","data":{"text":"Limited spots remaining"}},{"type":"paragraph","data":{"text":"By proceeding, I agree to Bankrate’s Privacy Policy"}},{"type":"header","data":{"text":"Know your local market","level":2,"anchor":"local-market"}},{"type":"paragraph","data":{"text":"Deciding whether to buy a house now or wait depends a lot on where you want to call home. Regardless of national headlines, real estate is a local game and can vary greatly from one market to another, even within the same state or metro area."}},{"type":"paragraph","data":{"text":"Consider this Redfin data from North Carolina’s Research Triangle cities of Raleigh and Chapel Hill, only about 30 miles from each other: In mid-2025, both cities had relatively similar median home prices of $450,000 and $495,000, respectively. But they’ve gone in opposite directions recently."}},{"type":"paragraph","data":{"text":"In Raleigh, the median price dipped to about $422,000, down 6% in a year. Meanwhile, the median price in Chapel Hill soared to nearly $660,000 in August 2026, up nearly 20% over the past year. They’re close in proximity, with similar pricing, but one market is in decline while the other is on the upswing. That can make a big difference for your buying strategy."}},{"type":"paragraph","data":{"text":"This is just one example of local markets going in different directions – and it’s another reason why it’s so hard to say whether it’s a “good” or “bad” time to buy. In today’s homebuying market, it’s more important than ever to find a real estate agent who really knows your local area — down to your specific neighborhood — and can help you successfully navigate its unique quirks"}},{"type":"header","data":{"text":"Next steps","level":2,"anchor":"next-steps"}},{"type":"paragraph","data":{"text":"Trying to buy a house right now might feel overwhelming, but waiting too long can present challenges as well. Review your finances in detail, and think about how much you’re able to pay upfront as a down payment. Your credit score is the single most important factor in determining your mortgage rate, so make sure you’ve cleaned up any outstanding issues."}},{"type":"paragraph","data":{"text":"Be sure to take the pulse of the town in which you’re hoping to live. Then, talk with an experienced local real estate agent to figure out whether you should buy now or wait until you’ve saved up enough to do a deal now."}},{"type":"header","data":{"text":"Frequently asked questions","level":2,"anchor":"faq"}},{"type":"list","data":{"style":"unordered","items":[" Should you wait for mortgage rates to drop?

No. It’s almost impossible to know where mortgage rates are headed. The best advice: If you’re financially and emotionally ready to buy a house, then you should do so regardless of where mortgage rates are.

"," Is now a bad time to buy a house?

Buying a house is a deeply personal decision, based on where you are in life. If you live in a one-bedroom apartment and are expecting twins, for instance, it’s a great time to buy a house, no matter what’s happening in the economy. Base your decision on your own individual circumstances rather than what’s happening in the housing market.

"," Is the housing market going to crash?

Housing experts do not think so. While there is certainly some economic uncertainty swirling right now, most experts believe that the housing market will not crash. Home prices may decline in some areas, but it won’t be catastrophic — think of it as more of a soft landing.

"," What if there’s a recession?

Talk of a possible recession has been increasing lately, and as you might imagine, recessions are a risky time to buy a home. If you lose your job, for example, a lender will be much less likely to approve your loan application.

Even if a recession doesn’t affect you directly, if your geographic area is hard-hit, that could have a serious effect on the local real estate market. Fewer people with the means to buy means a lower chance of homes selling, which could keep homeowners from listing and decrease your options as a buyer.

There are some potential upsides to buying a home during a recession, though, if you’re financially able to do so. Notably, there will be less competition, which could help you find a great property that you otherwise couldn’t.

"]}}]}

David McMillin

Should you buy a house now or wait?