Top 6 Reasons Why You Should Consider Buying a Home in 2023

It's no secret that the housing market is constantly changing. Almost every day there is a new headline about listing prices or mortgage rates, ultimately leaving buyers confused and wondering "Should I buy a home this year? Or, is waiting to buy a home a good idea?" There has been a large infusion of fear into the housing market, however, there are still many reasons why this year is still a great time to consider buying a home.

1. Historically Speaking, This is a Good Time for a Mortgage  

I want to especially emphasize this point for our first-time home buyers entering the market: fluctuating mortgage rates are completely normal. For many people (especially Millennials and Gen Z), all they have known is low or extremely low mortgage rates, such as those we experienced during COVID-19 times. So, it makes sense why some might feel unnerved seeing rates climb higher and higher. 

However, rest assured knowing that the rates you see today are still well-within the normal range, and even below average. In fact, when you compare today’s rates to the spike in the early 1980’s (when rates for a 30-year fixed-rate mortgage were more than 18%), they are extremely low. All this to say, be sure to take in the bigger picture. If you do some research into mortgage rates for the past 50 years and look at them from a historical perspective, the rates you see today aren’t out of line.

2.Your Credit Score Can Affect Interest Rates

Another key point to keep in mind is your credit score. It (literally) pays to have good credit and to maintain a good credit rating. One way to check the math is to get pre-qualified for a home loan. Going through the process of pre-approval will help you and your lender identify a starting point and make plans to move toward a better rate in the future.

On one hand, you may discover that your score is in good condition and that you qualify for the best rate right now, which would allow you to make a move today! On the other hand, if you find out that your credit score could use some love, the Mortgage Planners at Blackhawk Bank will be able to coach you through real steps to build up your credit score, so you may qualify for the best rate possible down the road.

It’s better to have this conversation sooner and have time to plan, than later when you want to make an offer on a house and learn it’s not an option – at least right now.

3. Commit to the House, Revisit the Rate 

Yes, it’s possible to have the home you’ve always dreamed of AND the rate you envisioned. When interest rates were high in the past, many people bought homes and then later refinanced their mortgage once rates were lower. This is a strategy you can employ as well! Refinancing will provide you the opportunity to receive a lower interest rate down the line, lowering your overall mortgage payment.  

When you are ready to refinance, you can use Blackhawk’ Bank's Refinance Savings Calculator to see how much you could save on your mortgage when you refinance to a lower rate. 

4. The Mortgage Market is Not as Competitive for Buyers Right Now

In the peak of the pandemic, it truly was a sellers’ market. Buyers were willing to go above and beyond to have their bid accepted, such as waiving inspections and offering well above asking price. This created a very competitive market for buyers, leading to bidding wars, cash offers, and uncertainty for many. 

However, reports show the market is slowly evening out. More sellers are offering concessions to buyers in hopes of enticing the right buyer to make an offer. While this will depend on the area you reside in, competition in the market is slowing down, making for an easier time buying a home. 

5. Remember Your “Why” in Buying a Home 

Yes, inflation and interest rates are sometimes reason enough to hit pause on the home buying process. However, it’s just as important to prioritize your “why” when considering buying a home. Are you looking to make a sound investment? Or in need of a place to call your own? Do you want to start a family in a brand-new place? Your motivation for buying a home should stay at the forefront of your home buying journey. Home ownership is a long-term investment that can produce a good number of benefits for years to come - so remember, buying a home is about a lot more than just current interest rates.  

6. Things Are Changing Everyday 

Just like everything else in life, mortgage rates experience ebbs and flows. What we see today may change tomorrow. While we cannot predict how long rates will stay at their present level, Blackhawk’s Mortgage Loan Officers are readily available to help you navigate this ever-changing market. Wherever you are on your journey, we are here to offer support and be your guide. Ready to learn more about buying a home? Talk to one of our Mortgage Planners today!  


Tammy Zurfluh 

SVP Mortgage Banking 

NMLS# 476483

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