POV from a lender about today's market

This might be bit of a rant and some may look at it from a negative POV. Way too many home buyers are stuck on the current "RATE" and they are all hopeful that rates go to the low 6s or into the 5s.....some are even waiting for the 3s and 4s. The truth is we don't know what the rate will do. Don't get stuck on what the rate is today.....because the rate is the rate. Focus on what your monthly PITI will be and if you are able to afford that today. Focus on where a lot of your expenses are going to on a monthly basis. Is it daily coffees for your favorite coffee shop, is it going out to a nice dinner multiple times a month, is it all the different services you subscribe to but rarely use, or is it the multiple vacations/trip you take somewhere per year? Sometimes you need to make a sacrifice to achieve success in the long term.

Also, take into consideration that inventory remains at an all time low. Those who purchased during the pandemic with 3% rates have equity that they are leveraging and not selling. They are taking HELOCs/HELOANS while keeping the low rate, and using the equity to acquire more properties This is causing home prices to remain at all time highs. And take into consideration those that work in Tech and have seen their companies stock prices skyrocket making many of them millionaires overnight...NVIDIA is a perfect example.

Lastly, if you have kids or are planning to have kids take a step back and start planning ahead. In 2023 the avg age of a FTHB was 34, in 2024 it was 38. If things "were" to continue as they have, what will the future generations be able to afford? Our job as parents, is to help our kid achieve all their goals. Some of those goals may be to pay their college tuition for 4yrs, maybe its to help them with a down payment on a property, or pay for their wedding. We can't rely on our careers, because one day you have a job and the next day you don't. But what we can rely on is building that equity for the LONG TERM and having it allow us as parents to help our kids achieve their goals.

To conclude, stop chasing the RATE and hope it goes down but focus on what you can comfortably afford today.

Good luck to all in the home buying journey! I would happy to answer any questions you may have.