The decision on timing to buy a home involves many factors. When strictly looking at financing, the cost to own historically increases over time. This is because as prices continue to climb, albeit potentially not as aggressively as they did in 2021, the same home today will cost less than it will in a year. At this point we've seen a confluence of economic factors with Covid and the bond market that have resulted in the lowest interest rates in the history of the U.S mortgage market. It stands to reason that prices may climb as they historically have, and that rates must climb from where they are. These two incidences will mean it will cost more to get the same home in a year than it would be today and is outlined in the video to the right.
Ultimately the rate dynamic is most impactful in this equation because even a $350,000 home at 2.99% is cheaper than the same home in a 'recessed' market, for example- priced at $300,000 and at 4.25% when rates do inevitably rise.