Buy a Home Now or Hope for Lower Mortgage Rates?

In this episode Michael tackles one of the most emotional and confusing decisions in personal finance. Should you buy a home now with a higher interest rate or wait and hope for a lower rate later? Our listener is looking at a payment that could be 42% of their income today but if rates came down would be a smaller amount of their income.

We talk through how to think about this without the noise of social media predictions and without betting your future on something none of us can control.

Inside this episode we explore:

💭 Why 42% might feel tight depending on your lifestyle and income

💭 How the size of your income may change what percent of income your home may be

💭 The problem with planning your life around a forecast of three percent rates

💭 How mortgage rates connect to the federal funds rate

💭 Why the ultra low rates after the Great Recession were the exception not the rule

💭 What inflation and unemployment have to do with potential future rate cuts

💭 The impact of layoffs in tech and the race for artificial intelligence

💭 Why a higher rate today with a refinance option later can sometimes make sense

💭 How slower housing markets and price cuts may work in your favor

💭 Why assuming rates will drop soon can be dangerous for your long term plan

If you are wrestling with the buy now or wait question, this episode gives you a grounded way to make your decision with more confidence and less stress.