Should you buy now or wait? Advice for home buyers amid current housing market

PHILADELPHIA (WPVI) -- Home buyers are finding themselves in a dilemma: Should they buy now or wait? Many people are deciding on the latter, but that may not be the best strategy for everyone.

Freddie Mac says 30-year mortgage rates have dropped to an average of 6.63%, which is the lowest in 10 months. However, the rates still aren't low enough for many potential buyers.

U.S. mortgage applications have decreased for the third consecutive week as people like the Tait family are waiting to make a purchase.

"When we bought our house in 2015, we had zero kids and now we have three," says Katie Tait of Rockledge, Pennsylvania.

She says they need more space, but she and her husband Sean are hesitant to make a move in this market.

"We don't want to dump all this equity (from our current house) into a property that may not hold the value that we purchased it at," he says.

The Taits say the house they bought ten years ago has a great interest rate.

"The best interest rates we can find are double what we have now," says Sean.

Plus, home prices in our area have hit a record high, escalating to an average of $325,000 in Pennsylvania and $416,000 in the Greater Philadelphia area this past June, according to the Central Penn Business Journal.

"In 2021, that's when we saw the increases and that's when the rates were lower. But the homes still kept increasing and the rates kept increasing as well," says Linda Hughes of Ovation Realty.

She says it's that combination that's really hurting buyers right now.

However, Hughes also says waiting even longer to purchase may not be the best strategy for everyone.

"The rates can always change and you can refinance later on, but the home increases, it doesn't look like they will be decreasing any time soon. It's probably best to get that home now," she says.

Assistance and grant programs are available in the tri-state area, including those to help first-time buyers with down payments.

The first step is to talk to a local, reputable loan officer to see what you qualify for.

"That's to protect the home buyer to make that they are not biting off more than they can chew. There's limits in place as to how much of a payment they can afford based on their income," says Dana Gounaris of NFM Lending.

He also reminds people that just because you can cover the down payment, that doesn't mean you can afford the continuing monthly payment.

As for the Tait family? They're still waiting for the right moment...and the right home.