Will You Make This Huge Mistake When Buying a Home?

A behavioral bias known as "anchoring" could be causing you to procrastinate when buying a home. Here's why this could cost you more money in the long run.

John Maxfield
John Maxfield
Apr 11, 2014 at 9:41AM
Financials

Buying a house is rarely a simple process. As a result, you shouldn't complicate it further by trying to time the mortgage market.

In the first case, it's impossible to predict what mortgage rates will do over the short term. These are influenced by any number of different things, including the ongoing conflict in Ukraine, the health of the U.S. economy, and trading volatility in the mortgage-backed securities market.

And in the second case, as Motley Fool contributor John Maxfield discusses in the following video, there's every reason to believe that the long-term trend over the foreseeable future is of steadily increasing mortgage rates. As a result, if you're thinking about buying a home but are waiting for borrowing costs to head lower, the smartest thing to do may be to pull the trigger sooner rather than later.