Is it still worth buying a house in 2024 with these interest rates?

Real Estate

My wife and I are looking at houses in the Phoenix area. We have $60k saved for a down payment and both have good credit (750+). But with rates around 7%, the monthly payments seem insane compared to what people were paying just 2 years ago. Should we wait for rates to drop or just buy now?

Jessica Brown

1 Answer

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I'm a real estate agent in Arizona and I'll give you my honest take.

Arguments for buying now:

You can always refinance when rates drop

Phoenix inventory is still competitive - waiting might mean higher prices

Rent isn't cheap either and that's money you'll never see again

With $60k down and 750+ credit, you're in a strong position

Arguments for waiting:

Rates might drop in late 2024/2025

Prices have softened slightly in some Phoenix suburbs

Higher rates mean more negotiating power with sellers

My honest opinion: If you find a house you love and the payment fits your budget (keep it under 28% of gross income), buy it. Trying to time the market rarely works out. We bought our place at 6.5% and don't regret it.

One tip: Look into 2-1 buydowns. Some sellers are offering them and it can make the first two years much more affordable.