7 Valid Reasons To Put Off Buying a New Home Right Now

Buying a house can be a great way to build wealth. But, even with mortgage rates finally cooling, is it the right time to make your move?

Depending on your financial situation, it might be smart to wait until 2025 to buy a house. It could give you more time to get your financial ducks in a row. Doing so will let you approach the next chapter with more confidence that you can afford the house you want and take care of it.

In fact, if you fall into any of the following categories, it might be time to slow the house hunt and just enjoy the open houses for the decor inspiration — for now.

If you're drowning in debt, now is not the time to take on more. Debt — including credit card debt, car loans, and student loans — can place a major drain on your income every month.

Adding a significant new payment — one that may be more than your rent or existing mortgage — isn't the way to move forward.

Instead, focus on paying off your debt and building your savings before taking the plunge into homeownership. Eliminating debt will free up money to help pay for your mortgage and cover other expenses.

Many people head into homeownership thinking they've made the down payment and now they're home free. Unfortunately, too many people find out that isn't the case within weeks of moving in.

An unexpected roof leak, a broken air conditioning system in July, a refrigerator that's finally given in — any of these expenses can be significant.

Plus, you or a partner could suddenly lose your job while still having a mortgage to pay.

For these reasons, it's wise to have a six-month emergency fund on hand before you make an offer on a home.

If you haven't scraped together enough cash for a sizable down payment, you might want to reconsider whether it's time to buy a house.

While you can make an offer with a down payment as small as 5% or less of the purchase price, that's not always ideal, as it will lead to higher monthly mortgage payments. Down payments of less than 20% often mean you have to pay primary mortgage insurance (PMI), which will add to your monthly payment.

That is why it can be wise to wait until you have a down payment of at least 20% saved up before going under contract.

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The general rule is you shouldn't spend more than 25% or 30% of your take-home pay on a mortgage.

If you can't get a mortgage within those parameters, you might want to wait until next year, when you'll either have more money saved up or will have a higher income.

The Federal Reserve controls the federal funds rate, the interest rates banks charge each other. While changes in this rate do not directly impact mortgage rates, there is typically a correlation in the direction of the two types of rates.

This year, the federal funds rate began to move downward, and that trend is expected to continue into 2025. That could mean mortgage rates will head in the same direction.

Even a half-point drop in mortgage rates can have a significant impact on the size of your monthly mortgage payment. If you believe it's likely that rates will continue to fall, you might want to wait to buy as the rates get lower and buying a house becomes more affordable for you.

In many markets, home prices have fallen from the highs of recent years. That is especially true of markets in the West and South that were red hot until recently.

There is no way to know for sure where home prices are headed in 2025. But if you think they are likely to fall, waiting a bit longer before buying might put you in a better position to snap up a great home at a bargain price.

Buyers typically want as many options as possible, so it can make sense to wait until 2025 if you think there will be more inventory on the market.

Spring almost always brings a bump in inventory. Holding off on buying this winter and waiting for the warm weather next year might make it easier to find your dream home.

One of the smartest homeowner moves is exercising patience. Buying in a hurry or making a move before you are ready rarely works to your advantage.

Instead, take your time. Crunch the numbers, shore up your finances, and buy a home when it makes sense for you. You'll never regret waiting until you're more financially ready — especially when you face that first big homeowner expense.