Is Now a Good Time to Buy or Refinance?
When mortgage rates move, the question always comes up: “Should I act now, or wait?”
After the Fed’s mid-September rate cut, buyers and homeowners alike are weighing their options. The answer depends on your personal goals — and understanding what’s really at stake if you wait.
Rates vs. Reality
Even small rate changes can have a big impact on affordability. A one-percent drop on a $400,000 loan can reduce your monthly payment by roughly $250. That’s real money — but it doesn’t always mean waiting is the best move.
If you’re planning to stay in your home for several years, refinancing — even at a modest savings — can often make sense once you account for your break-even point (when savings from the lower payment offset the refinance costs).
Why Waiting Can Cost You
Holding off might feel smart if you expect rates to drop further. But there’s risk in waiting too.
Inventory could tighten. The home you love might not be available later.
Rates could rebound. Markets move fast, and dips don’t always last.
Your financial picture could change. Credit score shifts or new debt can impact qualification later.
The Real Question to Ask
Rather than trying to “time the market,” ask:
How long do I plan to stay in this home?
What are my monthly payment goals?
How quickly will I recover refinance costs?
The right time isn’t about predicting the future — it’s about aligning your financing with your plans.
Bottom Line
Market timing is uncertain. But making a plan based on your life goals and financial picture isn’t. Whether you’re looking to buy your next home or refinance your current one, running the numbers now helps you make a confident move — not a rushed one.
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