Should I Wait

Despite the constant barrage of negative news in the media, if you're ready to purchase a property, don't let interest rates control your decision. Depending on your location, your real estate market may give you more leverage to negotiate when interest rates are higher. Additionally, you will avoid overpaying for a property in the long run. The best deals are often made in markets like the one we are currently in or heading towards. Rather than waiting for a hypothetical price drop that may never occur, consider connecting with an experienced broker with the necessary negotiation skills and a network of lenders to help you close a deal that suits your finances. Don't be afraid to submit offers.

Let's say rates drop to 5.5% in 12-18 months; you then compete with other buyers with "Sideline Syndrome." Now there's increased competition, aka bidding wars for homes that are not worth the war; now you are overpaying for a home and run the risk of less equity.

Purchase Price: $800,000 (adjusted price for current market)
Down Payment: 20%
30 yr Fixed, interest rate: 8%
Mortgage: $4,696

Purchase Price: $900,000(same property, bidding war)
Down Payment: 20%
30 yr Fixed, interest rate: 5.5%
Mortgage: $5,283

Purchase prices are based on the NYC market.