Should you buy a home in today's economy? Experts weigh in

Just a few months into the year, the economy faces a season of uncertainty highlighted by big drops in the stock market, a continued pause on interest rates and an inflation rate that fell in February but remains above the Federal Reserve's target rate. Amid this economic unsteadiness, potential homebuyers also have to deal with mixed signals in the housing market. 

Mortgage rates are around 6.7% now for a 30-year term after dipping to nearly 6% in September and surging past 7% in January, but they remain higher than they were leading up to and during the pandemic. Home price growth has slowed year-over-year but home prices remain high, and inventory is getting better but is still at a deficit compared to pre-pandemic levels. 

Consequently, homeowners may be unsure about whether or not now is the right time to buy a home. Some consumers might be wary of inflation and the struggling stock market and plan to wait until things settle down before committing to a mortgage, while others may want to take advantage of today's rates regardless of the economic outlook. What should you do? We asked some experts for their opinions on the next steps.

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Should you buy a home in today's economy?

Not sure if buying a home amid today's economic volatility is a smart move? We asked some experts for their thoughts on why you shouldn't (and shouldn't) act right now. Here's what they had to say:

Why you should buy a home in today's economy

Generally speaking, now is still a good time to buy a home, says Jason Kindler, president of mortgage broker First Coast Mortgage Funding.

"Here's the truth: everyone waits for the perfect moment, but in real estate, the perfect moment rarely announces itself," Kindler says. "We're in a window right now that people are going to wish they acted on. Rates are higher than they were, sure, but they're not forever."

Kindler believes that rates could fall later this year and, if they do, buyers who waited to purchase a home may regret their choice even though lower rates may seem like an advantage. "If rates drop into the 5% range, the demand will flood back into the market — and with that, prices will take off," Kindler says. "You don't wait to buy a house until everyone else wants one."

The idea that others are waiting for lower rates who will flood the market is one that Christina McCollum, a producing market leader for Churchill Mortgage, believes as well — while other buyers are holding out, now is the time to purchase. 

"For those that ask me if it's a good time to buy a home, I view it the way you look at planting a tree — the best time to plant a tree is 20 years ago," McCollum says. "Rates in March and April have been better than we have seen in two years, and though home prices are increasing, they are doing so at a manageable pace. There are still a lot of homes on the market and less competition because of people holding out for lower rates."

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Why you shouldn't buy a home in today's economy

Now, while it may be a good time to buy a home for many prospective buyers, you should avoid buying a home out of fear of what could happen to the housing market amid the current economic and rate environments, says Adam Neft, a sales manager at mortgage lender GO Mortgage. 

"I don't think it's ever a good idea to make any large purchase, let alone a house, out of fear," Neft says. "A fear that housing prices will rise. A fear that if one doesn't purchase today they may not. A fear that they missed the last buying opportunity or anything else."

Neft also points out that he has clients who have chosen to hold off on buying a home in today's economy for financial reasons or, in some cases, because they don't see themselves living in a home for more than a couple of years. 

"I do have buyers, though, who I speak to and we decide it's not a great time for them to buy," he says. "They are between jobs or expecting to be. The budget they have for what they want isn't there. The monthly payments for homes they're interested in would stretch them thin. They think they may not live in the home or own the home for more than a year or two."

The bottom line

If you're in a solid financial position right now and want to purchase a home, then now is likely the right time to buy, says JR Younathan, vice president, state production manager at California Bank & Trust. Buying a home is more than just numbers; it's about finding a place of refuge where you build memories, he says. 

"For a small family looking to build a life, engage with a community and create lasting memories, it's important to look beyond the economics and focus on the deeper benefits of homeownership," Younathan says. "Wealth and value come over time, and like many investments, looking at them over a 10- to 20-year period usually provides a strong return … At the end of the day, if you have the means to buy a home, it's always a good time. The economy will ebb and flow, but homeownership will continue to be supported in various ways."

And while some homeowners may still be hesitant to purchase right now over concerns that mortgage rates may drop, there's always the option to refinance if rates go lower in the future, Kindler says. 

"If you're someone who's been waiting for the 'right time,' let me offer you this perspective — the right time is when you can comfortably afford the payment and plan to stay put for a few years," Kindler says. "Buy the house, secure the home, and refi later when the rates dip. Because when they do, competition will explode."