4 Reasons to Buy when Rates are High

1. Current Rates Match Historic Averages

The scariest part of buying a home right now is the high interest rates! But... are they really that high? The historical low rates we saw around 2020 makes today's market rates seem unreasonably expensive, but that is actually not the case. According to BankRate.com, today's rates are relatively low compared to the historical records over the past 50 years. In the early 1980s, interest rates were as high as 16% on some mortgages. Experts are telling us to never expect rates below 3-4% again, as they were a pandemic-related anomaly and unlikely to return in our lifetime. The average interest rate in the United States is historically around 7-8%, which is the average we are currently seeing as of early 2024.

2. Buyer Incentives

These rates can still seem uncomfortably high, and understandably so - but builders and lenders are doing what they can to help. Currently, some of Omega Builder's preferred lenders are offering programs that allow qualified buyers to refinance to a lower interest rate at no additional cost within 5 years of purchasing their home. Lenders want to provide homebuyers with peace of mind, so don't allow the current rates to deter you from house shopping!

In addition, many builders and lenders are currently offering amazing incentives that can be used towards upgrades, closing costs, or to buy down your mortgage rate. Don't be afraid to ask about current offerings. Incentives are meant to assist buyers, so you should take advantage!

3. Less Competition

Due to the current rates, homes are staying on the market longer, and you may have less competition when purchasing a home. You probably will not have to worry about making an offer over asking price, competing in bidding wars, or making concessions in the hopes that your offer will be accepted. Keep in mind that if interest rates do drop, it could result in more buyers entering the market. Demand will rise and available homes will sell quickly - likely for over asking price. This will make the homebuying process more stressful, and buyers will be expected to come out of pocket for closing costs and pay more for the home than it is listed. On the contrary, shopping for a home now will result in a less stressful and more enjoyable experience!

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4. Builders are Increasing Inventory

Inventory of resale homes in the market is low, but builders are still building new construction homes. Many of these houses are move-in ready, but builders are also offering houses that can be designed from the ground up. With many options available at your fingertips, now is the time to invest in a brand new home for you to create memories in for years to come! 

Omega Builders has been building homes in Central Texas for 55 years! Our current communities include Nolanville, Belton, Temple, Salado, Troy, and even College Station and Bryan.  Check out these communities and see which area is the right fit for your family. You can easily access our move-in ready homes on our website, too. We are ready to help you take advantage of the amazing buyer incentives, discover affordable luxury, and find your dream home today!