Is It a Good Time To Buy a House?
With the ever-changing housing market, it can be challenging to know when it’s a good time to buy versus wait. While market conditions and mortgage rates should play a role in your final decision, ultimately, the right time to buy a house is when it aligns with your finances and goals.
- It might be a good time to buy a home if you can comfortably afford the monthly payments.
- Mortgage interest rates are expected to stay above 6% for the foreseeable future, which could affect your house budget.
- If your income or credit history is an issue, it may be wise to hold off until your finances are in better shape.
Is it a good time to buy a house?
As with most major financial decisions, there’s no single “perfect time” to buy a home, since it largely depends on your personal situation and goals. That said, asking yourself a few key questions can help you determine if now’s the right time for you to buy.
If you answer “yes” to at least four of these questions, it could be a good time for you to buy a house.
- Do you have a stable financial situation? When considering homeownership, it’s crucial to take a magnifying glass to your finances. Do you have a consistent monthly income? Do you make enough to afford the mortgage payments? Is your debt manageable? Do you have some savings? If you’re buying a house with another person, like a spouse, they should also answer these questions.
- Do you plan on moving again anytime soon? Although you can generally sell a home at any time, selling too soon after buying can mean you don’t break even on your closing costs. There’s a general consensus among many financial experts that people who own their homes for at least five years are less likely to lose money when it comes time to sell.
- Is your credit in good shape? Having a good credit score boosts your mortgage approval odds and impacts the interest rate you receive. Generally speaking, the higher your credit score, the lower your rate will be. Borrowers with 780 credit scores or higher typically get the best mortgage rates.
- Do you have money saved for a down payment? Your down payment is one of the biggest costs of buying a home. The median down payment was 18% among all homebuyers in 2024, according to data from the National Association of Realtors. Your minimum down payment amount will vary by loan type — conventional loans typically require 3%, while you can get an FHA loan for 3.5% down or a VA loan for 0% down.
- Can you afford the ongoing costs of owning a home? Buying a home comes with both upfront costs (like the down payment) and ongoing costs (including maintenance, repairs, homeowners insurance and property taxes). Since unexpected expenses will likely pop up, it’s generally recommended to beef up your emergency fund before becoming a homeowner.
- Do you understand what you want in a home? Knowing what you’re looking for in a home can make the process run smoothly and save time on properties that aren’t a fit. One idea is to create a list of “must-haves” and “nice-to-haves” to help narrow down your search. A good real estate agent can help match you with homes and provide valuable insights about the local housing market.
What are mortgage rates today?
The national average for a 30-year fixed-rate mortgage is 6.21%. It’s important to look at mortgage rates while considering when to buy, since they’ll impact how much house you can afford and the interest you’ll pay over time.
It’s a tough time to buy a house. Prices are still high, as are mortgage interest rates. The good news is that rates have been falling recently, and there’s reason to hope that the downward trend will continue. Regardless of what the housing market looks like, there are steps you can take to put yourself in a stronger position to buy, like shopping around for the lowest mortgage rate.
When is the best time to buy a house?
Once you’re financially ready for homeownership, the best time of year to buy a home is in January, according to a LendingTree analysis. January homebuyers who close on a 1,500-square-foot home could save $23,400 on average compared to those who purchase the same size home in May.
The choice about whether to buy or continue renting isn’t a simple one — it involves reviewing your goals and desired lifestyle. For example, if you want the flexibility to travel or move around for a job, renting could be a good fit. But if you’re at a stage in life where you want to settle down somewhere long term, buying might be a better option.
Learn more about whether buying or renting makes more sense for you.
Should I buy a house now or wait?
When to buy
The answer to this question will depend on your personal finances and goals. Even if market conditions aren’t perfect, it could still be the right time for you if your finances are stable and it fits in with your life plans. If you wait for mortgage rates to drop, pent-up demand could push up home prices. Plus, if you get a higher rate now, you could refinance to a lower rate down the line.
When to wait
You may want to postpone buying a house if you can’t afford the mortgage payments, you have a lot of debt, you don’t have any savings or you have bad credit. The good news is that no matter your situation now, you can take steps to get ready for homeownership by improving your credit score or creating a debt payoff plan.
Frequently asked questions
The housing market in 2025 is showing hints of shifting from a seller’s market to a buyer’s market, although it varies by location. Signs to look out for that may indicate a buyer’s market are increased inventory, price reductions and slower home sales.
The worst time to buy a home is when you’re not financially ready to do so. If becoming a homeowner would stretch your budget too thin or result in missed payments on your mortgage or other debts, it’s best to hold off.
Buying a house during a recession can mean less competition and a lower interest rate. However, recessions are difficult to predict, and markets don’t always react as expected. Instead of trying to time the real estate market, it’s best to buy when you’re financially prepared and it aligns with your lifestyle goals.
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