Why Now Is the Time to Buy a House

Homeownership is a major step, not to be taken lightly, and timing is incredibly important. 

This year is starting off similarly to how 2025 ended: few home sales, limited listings, and pricing uncertainty, but a silver lining is emerging. Mortgage rates are holding near a three-year low. And although there are still limited listings, homes are staying on the market longer. 

So, you may be wondering, is now the right time to take the leap? The truth is, the right time to buy a house is when it makes sense for you, not when the market is perfect, because frankly, the market is unpredictable.

Understanding market conditions, including interest rates and the housing market, and how they interact can help you make a well-timed decision. The Focus Federal Credit Union is here to help you take a deeper look into the factors you’ll want to consider when deciding if now is the time to buy a house.

What Experts Expect in the Mortgage Market

2026 is bringing a hint of optimism to the housing market. Mortgage rates have recently trended downward, and while the Federal Reserve isn’t promising any additional interest rate cuts soon, they’re near their lowest levels in more than three years. 

Rates are around ~6% in April 2026 and have been trending lower than a year ago. Freddie Mac’s weekly Primary Mortgage Market Survey (PMMS) shows a 30-year fixed averaging 6.01% (Feb 19, 2026) and 6.85% a year earlier. Maybe you’re thinking about waiting for pre-pandemic rates? Well, a bit of advice: Don’t hold your breath.

And waiting for the “perfect rate” isn’t just about waiting for the Federal Reserve to lower rates. Yes, what the Fed does will impact your rate, but the rate you get isn’t determined just by what they do. The interest rate you’re offered on a mortgage is based on both your financial information and current market conditions. Your credit score, down payment, loan terms, and loan type will factor into the calculation.

Why Now May Be the Time to Buy

Housing inventory is also trending to favor buyers. The January 2026 housing trends report notes inventory is up year-over-year. And homes are taking slightly longer to sell than a year ago, which is good news if you’re looking to buy. 

Over the past few months, homes listed for sale across the country spent a median of 50 days on the market before going under contract. It’s 10 days longer than a year ago. 

What does that mean to buyers? Major forecasters are predicting home prices to change between 1.3% to 2.2%. 

You may want to “proceed with caution.” Although it’s not a full-on buyer’s market, it could be a good time to buy a house, as you may have less competition and stronger negotiation power.

Before buying, you’ll want to:

• Set a Realistic Budget. Many homebuyers fall into the trap of thinking they can pay as much in monthly mortgage payments as they do in rent. This is usually not the case. Paying for a house isn’t just about the monthly mortgage payment. Homes require upkeep and maintenance. If you’re a first-time homebuyer, aim for a monthly payment that is less than your rent. If you already own a home and are moving to another, you’ll want to factor in any changes in upkeep, property taxes, or other additional costs.
• Negotiate. To negotiate house prices effectively, you need more than just a target price. You need insight, preparation, and patience. The best negotiation outcomes result from doing your research, understanding the market and the seller’s position, and keeping your emotions in check. Looking at what houses have sold for in areas you are considering is a starting point. And negotiating isn’t always about price. It could go beyond the numbers. Understanding the seller’s motivation can give you a unique edge. Are they relocating? Do they need to sell quickly? Price always favors in, but if you have flexibility in your move-in date, you may have the upper hand.
• Sell Before You Buy. If you currently own a home, consider selling it first. Selling first lets you access your current home equity to buy a new home. It will give you a clear budget and help you avoid carrying two mortgages.

How Refinancing Can Help

Interest rates aren’t permanent. If rates drop after you buy, you may decide refinancing makes sense. Refinancing pays off your original mortgage and replaces it with a new loan. A lower rate can reduce your monthly payment and free up money. You may also shorten your loan term or switch to a fixed-rate mortgage.

Refinancing does mean paying closing costs and fees. Ask yourself: How does your current rate compare to the new one? What are your closing costs? How long will it take to recoup them with your new payment? If your break-even point is six years away and you’re moving in four, refinancing may not make sense. And if you do refinance later, you might have even better credit, more home equity, and a lower loan balance, all the things that could help you score an even better rate.

The Real Question: Are You Personally Ready?

Taking on a mortgage is a major commitment. What matters most when deciding if it’s time to buy a house is your own readiness. While there is no perfect time to buy a home, it’s wise to be aware of the market conditions that impact what you’ll have to pay. When deciding whether to buy a home, you’ll want to think beyond market conditions and focus on your circumstances. Consider:

• Financial Health. Assess your current finances to determine how a mortgage fits into your overall budget. Buying a home isn’t just about having enough for the mortgage payment; you’ll want to account for property taxes, home insurance, and other homeownership-related expenses.
• Location. Renting makes moving easy. Before buying, consider if the location suits your job and family. It usually takes five to seven years to offset upfront home-buying costs. Will the location fit your needs for at least that long?
• Personal Situation. Are you thinking about starting a family, retiring, or relocating soon? These factors can make owning a home more appealing or potentially riskier.

Why Working With a Local Credit Union Matters

In the world of finances, it’s easy to feel like a small fish in a big pond. Big banks are often more interested in maximizing profits than in serving their customers’ needs. But choosing a financial institution should be about finding someone who invests in your future and your neighborhood.

Credit unions exist within the community and take a more personal approach. When you reach out to a credit union, you connect with local staff who can listen, answer questions, and offer guidance. The direct interaction helps ensure your concerns are addressed and decisions are made with a full understanding of your needs. 

Prepare With Focus Federal Credit Union

Ideally, you’d buy a home during a strong buyer’s market, but the market changes constantly. The right time to buy depends on your timeline and finances. FFCU mortgage specialists can help you start your homebuying journey with confidence. Contact us to review your credit, explore mortgage options, and get pre-approved.