With Interest rates so high, should you buy a home in 2023 or not?


by Charles McShan



fan of 100 U.S. dollar banknotes


Hello and Happy Summertime to one and all.

This is Charles McShan from Century 21 Universal in Chicago, Illinois. This blog post is entitled “Interest rates for homes in 2023. The photo above says it all. The higher the interest rate, the more cash will be taken out of your pocket to own the home of your dreams. The interest rate has dominated the news cycle for all of the year 2022, and it continues to affect us each day of 2023. So how are these rate hikes involving the everyday American? This blog post will look into it.

What is the purpose of interest rates?

Simply put, an interest rate is the percentage of the principal the lender charges for using their money to purchase a home, vehicle, or other items for sale on the market. The principal is the amount of money loaned. The interest rates affect the cost of the loan. All of us today in Amercia are personally experiencing the effects of the Federal Reserve as they adjust interest rates for proper economic growth. Its effect on the automotive, education, credit card industry, and the housing market is everyday news.

The bank applies the interest rate to the unpaid portion of your loan or credit card balance, and you must pay the interest in each compounding period, or your debt will increase. You will receive a higher rate if a bank considers you a risky investment. On the other hand, a person with a higher credit score will most likely receive a lower interest rate. Initially, you will be paying the interest of the loan. In time you will start paying on the actual debt of the loan. Most conventional home loans are fixed rates, meaning the rate will remain the same throughout the life of the loan. Your credit score and other factors will determine your personal interest rate.

There is also the Adjustable-Rate Mortgage, or ARM for short. I am not going to go into describing this type of loan. However, some homeowners had this type of loan back when the housing market crashed in 2007-2008.so; for those interested in this type of loan, please click this link here>>>click here.

So with high-interest rates, should you buy a home in 2023? 

Good question. There are many people out there who remember the housing crash of 2007-2008, and they eagerly await the subsequent impact with hopes of buying a home at a cut-rate price like it was back then. For those people, I say to them that crash is not coming.No one has a crystal ball, and no one can predict the future. Unlike in 2007-2008, most homeowners today are not upside down on their mortgage loans. Homeowners today are sitting on record levels of equity.

A: With that being said, some homeowners are upside down on their loans, so short sales are still occurring. Due to job losses, there is also an anticipated rate of foreclosures occurring in the future. But keep in mind that this is not 2007-2008. On my Facebook business page, I constantly say that what is happening now is not comparable to 2007. Today’s struggling homeowners have equity built up in their homes, but the economy burdens most Americans. As a CDPE expert, I am trained to handle foreclosures. If foreclosures occur on a grand scale, I will assist my future clients. What is a CDPE expert? I will talk about that later.

B: Will home prices drop? When housing supply exceeds demand, then home prices fall. The catch is that for the last 3-4 years, there has been a low inventory of homes, and the coronavirus pandemic did not help. The standard list of homes for sale on the market continues into 2023. With that still being the case, home prices are dropping, but not as it was during the 2007-2008 crash, so you must be realistic.

Any drop in the market will not mean a housing crash but a housing correction. Stay in the present. We hope 2007-2008 is a thing of the past and will not be repeated soon. But as we have seen recently, some Banks have been forced to close. Thousands are being laid off, and prices are rising for most goods. Will there be a recession this year? Only time will tell.


Speaking of time, time only moves backward on sci-fi movies and Star Trek. In reality, time only moves forward, and humans live in the present, the here and now. For those who can wait a few years, the interest rates will eventually decrease, and they can reenter the housing market. Unfortunately, many Americans can’t wait to move. They will have to deal with the high-interest rates and the low inventory of homes on the market simultaneously. For those who realize that time waits for no one, here are some helpful tips on purchasing the home of your dreams in 2023.

Put the subject of interest rates to the back of your mind. You are changing jobs, moving to another city. You recently got married, or you need more space or less space. It would be best if you were closer to your aging parents. All things are good reasons, but here is the top reason. You can lock in the monthly payment of your home for years to come excluding taxes and assessment fees if you choose that form of home ownership. Rental prices are going up in the Chicagoland area, but keep this point in mind your mortgage payment, along with all the other related bills, could double your rental income and put you in a financial bind, so make sure you analyze the actual cost of home ownership,

Apartment dwellers! Rents are slowly rising.

For you renters out there, I would like to say that Chicago is one of the last big cities where apartment living is still reasonable Reasonable rates are slowly coming to an end. Landlords are rehabbing older rentals. They are installing all the latest gadgets. For example, the furnace in the basement heating the whole building is becoming a thing of the past. Each rehab rental has its furnace requiring the tenant to pay their heating bill. Some landlords need their rentals also to deliver water and garbage collection fees.

So those thinking of continuing to rent until the interest rates lower are in for a rude awakening.Right now, a three-bedroom rental costs anywhere from$1.500 to $3.000 a month, depending on the area. I know a lady paying $3.400 monthly for a two-bedroom rental in Boston. Rents in New York City, Los Angles, and San Francisco are thru the roof, and Chicago is slowly going in that direction, so prepare yourself, apartment dwellers.

More information on interest rates, loans, home ownership, and whether you should do a home inspection?

Going back to buying a home now, The phrase “Marry the house but date the rate.” is trendy. The following article discusses the pros and cons of refinancing. If you wish to read it, please click the link here>> click here.

So there you have it. Buy now with the high-interest rates and refinance when the rates drop. Some loan companies offer free refinancing if you purchase your loan with them. Others will charge you a fee, so you must shop around. So now let’s sum all this up. With interest rates so high, s should you buy a home in 2023 or not? That will be your personal decision. 

With all that being said, you will acquire seven benefits with homeownership. If you wish to know what they are, please read this article.> click here

A lot of homebuyers during the coronavirus pandemic made severe mistakes when to avoid losing out on a deal chose to purchase their home by using a home inspector to check out the integrity of their home. Now they are regretting that decision. Always do the home inspection. Know what you are purchasing. By reading this article published by NAR’s  Melissa Dittmann Tracy, hopefully, you will not make the same mistake. click here

What is the concluding step?

Whether you are selling or buying your home, the next step is vital, and that is choosing the Realtor to represent your interests. You want your Real estate Broker to care for you as a person. To have your interests in mind. To go that extra mile. Keep your client in the loop and negotiate to the very end. Be professional and courteous, and yes, maintain your integrity at all times. Be honest and be willing to think outside the box. When the homebuyer or seller hires you, they seek peace of mind. They want to know they are in good hands and have someone with the knowledge, skills, and expertise to secure their best interests.

They want Real Estate Broker to sell their home or close the deal in the home buying process. Getting my clients to the finish line is my goal. The interest rates are what they are. They are not dropping anytime soon. There might be more rate hikes on the horizon, so for 2023, many homebuyers will have to make some hard decisions. Homeowners desiring to love will also face difficult choices. Housing inventory is still historically low, and they, too, will have to absorb the high-interest rates. So move or not to move is the choice millions of American homeowners and renters will make this year.

Latest Real Estate News!

We are now in June; interest rates are still high, and yesterday I saw a story in the news that might be misinterpreted about buyers wishing to purchase a home by going FHA. Here is the story and how some media reporters say it is a 40-year loan which it is not. It is a modification. Understand the difference, and you not be suckered into a misunderstanding that could cost you a lot of money. Understand, please read this article here.>click here

Despite the high-interest rates, qualified buyers are getting mortgage loans. But homes are few and far between, and with that being the case, each home for sale on the market is receiving multiple offers, so be prepared for that. June, July, and August are typically the months people move because they want to have their children enrolled in the school districts they wish to move into. So start your search early and be prepared for the rejection of your offer not being accepted. This is business, nothing personal, but if you hang in there, you could be successful and purchase the home of your dream.


These last few months have been difficult for me. I was getting into the groove of writing blogs, and last August, the unexpected happened. I was accused of copyright violation. I posted my previous blog post in December of last year, and all the while, that was hanging over my head. That matter was settled, but it was a traumatic experience. I  was cautious, I knew better, but mistakes do happen. As James Brown once sang, I paid the cost to be the boss. I created most of this post in early January but was afraid to publish it. I let it sit for months because I did not want another accusation, but if you are going to blog, you must keep moving forward. There are companies out there who place bots online to find bloggers who are not compliant. That is their right. So I must make sure that I give credit where it is due and buy photos from good sources, and hopefully, I  will stay out of the hot seat.

 So, in conclusion,with the high-interest rates, should you buy a home in 2023 or not? Some will say no, but many will say yes. Others are still waiting for the housing market to crash. Interest rates are high and might continue to rise, but will they return to around 3%? Who knows, if the rates decrease, it will take months or years for the rate of 3% to return? Can you wait that long?  You will make that personal decision to wait on an unseen future or to buy today. If you are ready to move forward and purchase that home and you are in the Chicagoland area, I am here for you. My office is located at 7300 N. Western Ave in the West Ridge area of Chicago, Illinois. All my contact information is below. I hope to hear from you soon. Click the links below for free e-gifts. I hope they provide value for you. Take care and be safe. Once again, have yourself a happy June!

                                                                Charles McShan

                                                                 312 9143678

                                                                 [email protected]

                                                                [email protected] 

If you are a homebuyer wishing to purchase their property, click here for the latest home buyer’s guide>>click here.

If you are a homeowner wishing to sell her home, please click here for the latest home seller’s guide>>.click here




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