For the latest Advisors’ Advice, ThinkAdvisor asked advisors to tell us, with mortgage rates continuing to rise and a recession likely, what they are advising clients who want to buy a house now.
Advisors were split on whether clients should buy a home now if they really need or want one or wait six months or more to see where interest rates land.
Although interest rates may seem high now, they are relatively low historically. Besides, several advisors noted, clients who buy homes now can refinance down the road if interest rates decline. If interest rates rise, they are locked into a lower rate if they buy now.
Several advisors stressed that if clients’ lives are in flux now and they’re not sure how long they plan to be living in a new home they buy, they’re better off waiting.
Another factor that clients need to definitely weigh before buying a home: How stable their incomes and jobs are. If there have been a lot of layoffs at the company a client works for, they may want to reconsider whether buying a house now is a wise move.
Check out advisors’ responses in the gallery.