“When is the best time to buy a house?” The question is revived now because interest rates seem high, now hovering around 4%, and this is what people who need to request financing from the bank feel to acquire their new home.
But the truth is that interest rates are only part of the equation, and perhaps not the definitive factor in making the decision to buy a new home.
For context, Bank of America, one of the most notorious lenders in the United States, is currently selling 30-year fixed mortgages at 7.75% NIR, more than double the average mortgage interest rate. incorporated in Spain according to the INE, which is 3.49%, as of July 2023.
Housfy Hipotecas, a mortgage intermediation company with roots in Spain, processed fixed mortgages at a 2.50% NIR in September.
The HSBC UK bank, one of the largest in the United Kingdom, announces mixed mortgages with the first three years at a fixed 6.04% NIR and a subsequent variable tranche close to 7% NIR.
The Housfy Hipotecas registry shows that in September mixed mortgages were processed with the first three years at a 1.60% TIN and the rest of the period at a Euribor 0.59% TIN.
Any mortgage broker or specialist we talk to will tell us that the best time to buy a home is when we are financially prepared.
Symbols of good financial health are:
And this is the formula: whether interest rates are at 7% or 1%, the time to buy a house is when you are ready to do so yourself.
