Why Now is the Right Time to Buy a New Home

Great news for prospective homebuyers — interest rates are down!  The Federal Open Market Committee (FOMC) decided to lower its key policy rate by 50 basis points, marking the first interest rate cut since the outset of the Covid pandemic. Basis points are a common unit of measure for interest rates. That’s extra cash in your pocket to use for furnishing, savings or simply enjoying your new home!

Interest rates are still in the 6.5 percent range but that’s lower than they were earlier this year. With lower interest rates, you’re able to lock in a mortgage with more favorable terms, reducing your overall financial burden.

Lower rates mean smaller monthly payments, making it easier to budget and manage your finances. Whether you’re a first-time homebuyer or looking to upgrade, this is an ideal time to secure a mortgage that works best for your financial situation. Imagine the possibilities with the extra money you’ll save — perhaps you can afford a kitchen upgrade or to add that media room you’ve always wanted.

Lower rates also mean there are more opportunities for buyers as more people become interested in selling their homes. Many builders are offering incentives that include low or zero closing costs, as well as purchasing points for buyers which lower interest rates even more. An increase in the number of homes on the market makes for a more competitive market, so home prices trend downward. That plus lower interest rates could mean lower monthly payments.

Buying a home now is an excellent way to build equity while interest rates remain favorable. Equity represents the portion of the home you truly own, and as you make mortgage payments, your equity grows. When interest rates are lower, a larger portion of your monthly payment goes toward reducing your loan’s principal balance, accelerating the pace at which you build equity.

Additionally, owning a home means you are building an asset over time, rather than contributing to a landlord’s income. This financial foundation offers peace of mind, knowing that your monthly payments are working toward an investment in your future. By locking in a mortgage now, you’re setting yourself up for a more stable and predictable financial future, where you have control over your housing costs and the added benefit of potentially growing your home’s value over time.

Now Is the Time to Buy in Lago Mar

Investing in a home is about so much more than just the financial aspects—it’s about planting roots and becoming part of a community. Purchasing a home in Lago Mar is an excellent way to become part of a community due to our incredible amenities and resident activities. You’ll make friends for life and develop a support network. Visit our community and speak with our builders’ representatives to see if a home in Lago Mar is in your future.