Why You Shouldn't Try to Time the Housing Market (and What to Do Instead)

Estimated reading time: 5 minutes

Purchasing a home is an exciting time, but it can also bring out certain anxieties. Many homebuyers wonder whether they should wait for mortgage rates or home prices to fall before buying a home. While looking at national data can help you understand how the United States is being affected by certain economic trends, the challenge comes when buyers delay purchasing while waiting for a market crash that may never happen. As you bide your time for the “perfect” moment to enter the market, you’ll still be paying rent and missing out on equity.

Why Shouldn’t You Try to Time the Housing Market?

Many headlines don’t cover local housing data. Major news outlets typically cover national data to help readers understand how the United States is responding to certain economic trends, but the data they share often doesn’t reflect local housing market conditions.

Instead of reading mixed signals about the market, it’s best to work directly with experts. Working with a local real estate agent can help you stay grounded in the information that matters most.

What if the Housing Market Crashes or There is a Recession?

While forecasts vary, both the National Association of Realtors and Bankrate do not currently expect a major nationwide decline in home prices or home inventory.

Homeownership may help offer stability when compared to renting. If you have a fixed mortgage rate, your monthly payments will not be affected, regardless of how the market responds. This can offer peace of mind to homeowners that renters miss out on.

What Can You Control?

While you can’t control interest rates, housing inventory, or prices, you can control when you buy a home. This is why a common phrase among loan professionals is “marry the house, date the rate.” If rates improve in the future and you qualify, refinancing may allow you to secure a lower rate.

This strategy can also help buyers avoid heightened competition in the market. When rates dip lower, competition often increases because people are motivated by the savings in interest. However, this can lead to a seller’s market with bidding wars and higher home prices as there are more buyers vying for the same number of homes.

Signs You’re Financially Ready to Buy a Home

Purchasing a home should be a decision made when you feel ready to do so. Obtaining a pre-approval that outlines how much money you can borrow from a mortgage lender, combined with the expert local market knowledge of your real estate agent, can help push you in the right direction.

You Have a Strong Credit Score

Your credit is a factor your mortgage lender will use to determine your affordability, loan eligibility, and interest rate. Your score, history, and mix can provide lenders with insight into how you manage debt over time. This includes your payment history, how long you’ve had certain credit accounts, how you utilize your credit, and if you’ve taken out any major loans or opened new accounts recently.

Your Debt is Manageable

Your debt-to-income (DTI) ratio is an important metric used by lenders to determine if the money you earn (your income) can handle a long-term mortgage payment in addition to the money you owe each month (your debts). The ideal DTI ratio is dependent on the loan program you agree to with your lender; however, a low ratio generally shows that you have a healthy balance between income and debt obligations.

You Have an Emergency Fund

Experts advise having at least three to six months’ worth of living expenses in an emergency fund. However, in a Bankrate survey from June 2025, 46% of adult respondents said they didn’t have the savings to cover even three months of expenses.

If something were to break in your new home or another emergency cost emerges because of a medical emergency, unexpected home repairs, or job loss, your emergency fund can keep you from stretching your savings thin to accommodate additional costs.

You Have Enough Saved for a Down Payment

The exact amount of money you’ll need for a down payment varies based on what loan program you choose. Some loan programs may allow lower down payment requirements for qualified borrowers, with some borrowers contributing anywhere from 3% to 20% of the overall purchase price of a home.

Regardless of the larger economic factors, deciding to buy a home is a personal decision. That’s why it’s important to surround yourself with experts that have your home financing goals and best interests in mind. Ready to start the next steps toward homeownership? Contact us today to start the pre-approval process!