Should I Buy A House — Now Or Wait Until 2018

The Tax Cuts and Jobs Act of 2017 introduced new limits on mortgage interest deductions (lowered to $750,000 for new loans) and a $10,000 cap on state and local tax (SALT) deductions. Waiting allowed buyers to see how these changes affected their specific tax liability and local market demand.

Mortgage rates rose significantly, averaging roughly 4.44% by early 2018 and even touching 5% later in the year. This increase in rates often offset any benefits from slower price growth, significantly reducing overall home-buying power . Historical Comparison: 2017 vs. 2018 Late 2017 (Actual) 2018 (Forecast/Actual) Avg. Mortgage Rate (30-yr) ~3.9% – 4.0% ~4.5% – 4.8% Home Price Growth 6.3% increase 4.9% projected increase Market Condition Extreme inventory shortage Modest inventory growth should i buy a house now or wait until 2018

The decision between buying a home in late 2017 versus waiting until 2018 presents a classic tradeoff between and potential inventory relief . The Case for Buying in 2017 The Tax Cuts and Jobs Act of 2017

For those who waited, the primary hope was a . Some analysts predicted that more homeowners would list their properties, potentially slowing the rapid price surges seen in previous years. This increase in rates often offset any benefits

The benchmark 30-year fixed-rate mortgage averaged 3.99% at the end of 2017.

In 2017, the housing market was defined by , which hovered around 3.9% to 4.0% for most of the year. For many, this presented a "last chance" to lock in lower monthly payments before the Federal Reserve’s planned interest rate hikes took full effect.