All of this year I have been helping Hudson County residents relocate to Central New Jersey when they are ready to seek more space, yet still be commutable to New York City.  Prospective homebuyers all seem to wonder when it’s the “right time” to buy. Following the pandemic, we saw home prices reach all-time highs while mortgage rates hit all-time lows. That’s helping offset the higher prices, as lower rates translate into lower monthly home payments, despite the actual purchase price.

Why do those numbers matter? Because just a quarter-point of interest rate movement can make a big difference in how much a homeowner pays each month. While some prospective buyers wonder if they should wait for home prices to go down, what they don’t realize is that top economists are projecting interest rates to go up. That would offset any reduction in monthly housing payments and possibly make those payments higher.

To put that in perspective, a more typical “normal” rate in a healthy market would be closer to 4 percent, says Len Kiefer, deputy chief economist at Freddie Mac. Barring any economic disasters, Kiefer says, rates probably won’t start moving closer to 4 percent until 2023 or beyond.

So for anyone wondering if now is the best time to buy, the answer is yes.

Sources: Realtor.com, Freddie Mac.

If you have been considering a move to Central New Jersey, and would like some guidance on what the different towns have to offer, call or text Tina Woods at 973-255-0981.