Why is it the time not to buy a house?

It's often considered a tough time to buy a house due to ** record high prices, significantly elevated mortgage rates, and affordability challenges** stemming from stagnant wage growth and high consumer debt, straining budgets despite some market cooling. High insurance costs and stricter lending add to the struggle, making it difficult for many, especially first-time buyers, to afford down payments and monthly payments, even as inventory slowly improves in some areas.

Why shouldn't you buy a house now?

In conclusion, while there are many benefits to owning a home, it may not be the right decision for everyone at this time. If you're concerned about high home prices, economic uncertainty, rising interest rates, limited inventory, or prefer flexibility, it may be best to hold off on purchasing a home right now.

Why are people not buying houses right now?

Part of the problem is that people who already own homes, often with much lower mortgage rates, are staying put longer than they used to — a record 11 years, on average, according to the new Realtors' report. That means fewer houses are available for new buyers.

What salary to afford a $400,000 house?

To afford a $400k house, you generally need an annual income between $100,000 and $135,000, but this varies based on interest rates, down payment, credit score, and other debts, with lenders often looking for total housing costs (PITI) to be under 28% of your gross monthly income and overall debt-to-income (DTI) below 43%. A larger down payment or lower interest rate reduces the required income, while higher existing debts increase it. 

Is it a bad time to buy houses right now?

Good news for anyone who wants to buy a house before the end of 2025: There are positive signs of improvement. According to the Realtor.com November 2025 Housing Market Trends Report, there are indications that the real estate market has become more balanced since 2024.

Why Nobody Can Afford a Home Anymore

Will mortgage rates ever be 3% again?

It's highly unlikely mortgage rates will return to 3% anytime soon, with most experts predicting rates will stay in the 5.5% to 7% range, gradually decreasing but not plummeting back to pandemic-era lows without a major, unexpected economic crisis like a severe recession or financial collapse. While low rates were a unique response to the COVID-19 pandemic, future drops to 3% would likely require a significant negative economic event that pushes bond yields down dramatically, a scenario most forecasters don't see in the near future. 

Can I afford a $300 k house on a $70 k salary?

If you're an aspiring homeowner, you may be asking yourself, “How much house can I afford a with $70K salary?” If you make $70K a year, you can likely afford a home between $290,000 and $360,000*. That's a monthly house payment between $2,000 and $2,500 a month, depending on your personal finances.

How much house can I afford if I make $70,000 a year?

With a $70,000 salary, you can generally afford a house in the $210,000 to $350,000 range, but this varies significantly; expect monthly housing costs (PITI) around $1,600-$1,700 (around 28% of your gross income) and aim for a total debt-to-income (DTI) ratio under 36-43%, depending on factors like your credit score, down payment, and existing debts. Lenders look at your full financial picture, so a lower DTI (fewer car loans, student loans) and a larger down payment (like 20%) will stretch your budget further. 

What credit score is needed for a $400,000 mortgage?

For a $400k mortgage, you generally need a credit score of at least 620 for a conventional loan, but government-backed options like FHA loans can accept scores as low as 500-580, while VA/USDA loans have lender-set minimums often around 620-640, though the score needed depends more on the loan type and lender than the loan amount. A higher score (700+) gets you better rates, while a lower score may require a larger down payment or mortgage insurance (PMI). 

What is the true cost of owning a home?

A typical homeowner in the U.S. might expect to shell out about $45,400 a year for home expenses. The costs to consider before owning a home include things like a mortgage, HOA fees, increased utilities, lawn care, and home maintenance and repairs.

Will home prices crash in 2025?

No, most experts don't predict a 2008-style housing market crash in 2025; instead, they foresee a continued market correction towards normalization, with slower price growth, stabilized or slightly appreciating prices (around 1-3% nationally), and localized variations, meaning some areas might soften while others stay strong, all while the fundamental factors like low inventory and strong homeowner equity differ greatly from the 2008 crisis. 

Do homeowners regret buying a house?

(InvestigateTV) — A new survey from Bankrate found that 45% of current homeowners regret something about their home-buying experience — and for many, the surprises came after they moved in. The most common regret? The cost of maintenance.

What is the 3 3 3 rule in real estate?

Three months of savings, three months of mortgage reserves, and three property comparisons give you confidence and flexibility. When you follow the 3-3-3 rule, you're not just buying land, you're building a plan that could protect your investment, your lifestyle, and your financial health.

What is a red flag when buying a house?

Red flags when buying a house include structural issues (foundation cracks, sagging floors), water damage signs (stains, musty smells, mold), poor maintenance (peeling paint, overgrown yard, cheap DIY fixes), outdated/problematic systems (old electrical, bad plumbing, HVAC), and neighborhood/transactional issues (high turnover, seller secrecy, proximity to hazards). Always get a professional inspection to uncover hidden problems, as cosmetic fixes often mask deeper, costlier issues.
 

What devalues a house the most?

The biggest factors that devalue a house are neglected major repairs (like roof, foundation, systems), poor curb appeal, and outdated interiors/kitchens/bathrooms, as these signal large costs to buyers, followed by extreme customization, shoddy DIY, and negative external factors like bad location or legal issues. «!nav>>Deferred maintenance and problems found during inspections (water intrusion, structural issues) often hit hardest, making buyers walk or negotiate heavily. 

What is Dave Ramsey's advice on mortgage rates?

Dave Ramsey's core mortgage advice centers on affordability and debt reduction: only get a 15-year fixed-rate mortgage, keep the total monthly payment (PITI - Principal, Interest, Taxes, Insurance, HOA) under 25% of your take-home pay, avoid 30-year loans to save massive interest, and don't buy if you have other debt or no emergency fund; if rates are fluctuating, buy if you're ready and can afford it, as you can always refinance later.
 

How much house can I afford if I make $36,000 a year?

With a $36,000 income, you can likely afford a home in the $100,000 to $150,000 range, but this heavily depends on your debt, credit, down payment, location, and interest rates; lenders often look for housing costs under 28% and total debt under 36-43% of your gross monthly income (around $3,000/month), meaning your total monthly housing payment (mortgage, taxes, insurance) should ideally be under $840-$1000, and total debt under $1290-$1500. 

Is it true that after 7 years your credit is clear?

It's partially true that negative items generally fall off credit reports after about seven years, but it's not a universal "clear" button, as bankruptcies last longer (up to 10 years) and the clock starts from the original delinquency, with some debts potentially lingering or getting "re-aged" by debt buyers, so you must check your actual reports to ensure removal. 

What is the 2 2 2 credit rule?

The 2-2-2 credit rule is a guideline for lenders, especially for mortgages, suggesting borrowers should have two active credit accounts, open for at least two years, with two years of on-time payments, and often a minimum $2,000 credit limit per account, demonstrating responsible credit management for a healthy financial profile. This rule shows lenders a consistent ability to handle credit over time, reducing risk for larger loans like mortgages, though meeting it doesn't guarantee approval. 

How much can I afford for rent?

Monthly Rent You Can Afford

We know 25% might seem like a low number to you. After all, there are plenty of people who spend a lot more than that on their housing costs—and some so-called “financial gurus” even teach that it's okay to spend 30% of your take-home pay on rent. (They call that the “30% rule.”)

How much house can I afford if I make 300k a year?

With a $300k salary, you can likely afford a home from $900,000 up to over $1.1 million, depending on debts, down payment, and interest rates, with lenders often suggesting a budget around $925,000 to $1.1 million using rules like the 28/36 guideline (housing costs < 28% of gross income, total debt < 36%). Aim for the lower end for comfort, but lenders might approve more, though it's wise to stick to your budget to avoid being "house poor". 

Is 74k a year good?

If you make $75,000 a year, you're earning more than half of all workers in the U.S. And in fact, many people would probably consider the salary as good pay. After all, a $75,000 salary works out to around $6,250 per month, $1,442.31 per week, or $36.06 an hour.

How does debt affect mortgage approval?

Balancing Your Picture. Your secured debt monthly payment(s) are a known amount that will reduce the mortgage amount that you qualify for. If you owe $500 per month on a car payment, for example, the lender will deduct that from your available income when calculating your pre-approval.

Is a 300k salary rich?

Yes, earning $300k a year is objectively high income, placing you in a high percentile nationally (around the top 5-10%), but whether it feels "rich" depends heavily on your location, family size, debt, and spending habits, with many high earners in expensive cities feeling upper-middle class or just comfortable due to high costs and taxes. While it's a very strong income compared to the average, high expenses in places like NYC or LA can make it difficult to feel wealthy, leading many to define "rich" by having no debt, early retirement, or generational wealth, not just by income. 

How do I negotiate a better mortgage rate?

How to negotiate mortgage rates

1. Learn about market rates. ...
2. Know your own financial profile. ...
3. Compare offers from different lenders. ...
4. Then, ask for a lower rate. ...
5. Negotiable fees. ...
6. Non-negotiable fees. ...
7. Third-party fees borrowers can influence. ...
8. Homeowners looking to refinance.