Don’t Fear Today’s Mortgage Rates: Why Buying Now in the Hudson Valley Could Be Smart

Should I buy a home now or wait for mortgage rates to drop?

It depends on your situation, but in the Hudson Valley, waiting could actually cost you more. Even if rates dip slightly later, rising home prices and increased buyer competition may outweigh the savings. Acting now can help you secure your dream home with less competition and more choices.

Understanding the Full Picture

Mortgage rates can feel like a major hurdle when considering buying a home. Many people in the Hudson Valley see today’s rates and decide to wait, hoping for a lower number. But what if waiting isn’t the best strategy for our local market?

At TEG Federal Credit Union, we want to help you understand the full picture. Waiting for the “perfect” rate might cost you more in the long run. Let’s look at why acting now could be the right move for you, especially with the unique trends we’re seeing right here in our community.

The Local Impact of National Rate Changes

Everyone is hoping for mortgage rates to fall. Nationally, experts predict that a small drop could bring millions of buyers into the market. According to the National Association of Realtors (NAR), if a 30-year fixed-rate mortgage hits 6%, it could make homeownership affordable for about 5.5 million more households nationwide.

When rates do eventually fall, potentially sometime in 2026, many buyers who have been waiting will jump back in. This surge in demand will create more competition and likely drive home prices up. More buyers mean you’ll face more challenges finding the right home, especially in desirable Hudson Valley neighborhoods.

Does Waiting Really Save You Money?

You might think waiting for a lower rate like 5.99% will save you a lot of money. Let’s break down the numbers. On a $400,000 mortgage, the difference between a 6.2% rate and a 5.99% rate is about $50 per month. For many people, that’s less than a few weekly coffee runs or food delivery orders.

While you wait for that small monthly savings, home prices could increase, canceling out any benefit from a slightly lower rate. The reality is that waiting for the “perfect” rate might actually cost you more, especially given how the Hudson Valley real estate market continues to evolve.

Advantages of Buying in the Hudson Valley Now

Even with current rates, acting now offers several advantages for local buyers. You have opportunities today that may not be available when the market gets more crowded. The Hudson Valley is experiencing a unique shift that savvy buyers can leverage.

More Choices and Stabilizing Prices

After a period of very tight supply, inventory is slowly increasing, and more homes are coming onto the market in the mid-Hudson Valley. This means more choices for you. At the same time, the rapid price increases of the past few years have started to slow down, bringing more stability to the market.

While demand is still strong, especially from new residents and those looking for homes under $500,000, the increased inventory gives you a bit more breathing room. With fewer buyers competing for each property than during the peak frenzy, you have more power to negotiate with sellers, potentially securing a better price or seller-paid closing costs. These advantages may disappear as more buyers reenter the market.

What This Means for Your Home Search

Jessica Lautz, Deputy Chief Economist and VP of Research at NAR, observes: “This has provided savvy buyers a sweet spot to reexamine the home search process with more inventory, widening their choices.”

This trend is clearly reflected in the Hudson Valley, with increased listings and options across Dutchess, Ulster, and Orange counties. For local buyers, that means more opportunities to find a home that fits your lifestyle and budget.

Focus on Your Financial Situation

TEG Mortgage Officer Jeffrey Shields suggests that you focus on your personal financial situation instead of chasing a specific rate. Ask yourself these key questions:

• Is this the right house for me?
• Can I comfortably afford the down payment and monthly payments?

If the answer is yes, then now could be the right time to move forward. Don’t let fear of today’s rates hold you back from a home that fits your life. Our mortgage team at TEGFCU can help you assess your finances and find a mortgage solution that works for you.

Your Next Step with TEG Federal Credit Union

Don’t let today’s mortgage rates scare you away from your dream of owning a home in the beautiful Hudson Valley. Waiting for the perfect moment doesn’t always work out, and when rates do fall, competition will rise.

If you’re getting ready to buy, this could be your opportunity to act before the market becomes more competitive. Getting pre-approved for a mortgage gives you a major advantage, helping you move quickly on well-priced properties and showing sellers you’re serious.

At TEG Federal Credit Union, we’re committed to helping our members reach their homeownership goals. Getting pre-approved with us is a smart first step, it strengthens your offer and helps you move fast when you find the right home.

Learn more about TEG’s mortgage options and get pre-approved today!

Your dream home is within reach, and we’re here to help you make it happen.

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