a $700k 2 family where you are living on one side or one part and the other part is paying your bills I assume is the dynamic here.
You said down payment....to me this is a problem at current.... you arent going to find rates under 6% anywhere and thats if your credit is 750+ not saying its not just mentioning it because average 20 year something old credit is not 750+
I would wait 18 months save more so you have more to put down and do it and get the home at 4-5%...The fed said they are lowering rates 3x this year so why not wait till sometime in 2025??? If you buy at 29 at 6.5% or at 31 at 4.25% the rate will make a big difference but the age wont.
Good info for the most part. I just want to add another viewpoint to the bolded:
1. Waiting 18 months will only see the price of homes go up.
2. The moment rates drop below 6%, the buyer pool is going to increase (more competition). This will also result in home prices going up due to multiple offer situations and the market being more willing to pay above asking/appraisal value.
3. It will still be a Sellers market in 18 months. It has been a “sellers” market for the better part of the last 7+ years due to low inventory/high demand.
4. Rule of thumb - if you can afford to buy a home now, don’t wait. He could benefit from the 18 months of equity growth if he buys now opposed to paying more later. Just refi into the lower rate in 18 months.