'If I Were Buying Real Estate Right Now, I'd Wait Til September' - Suze Orman Shares Why

Suze Orman, the  well-known financial expert, recently shared her perspective on the real estate market, advising potential homebuyers to wait until September before making a purchase. Her reasoning? Persistently high mortgage rates and uncertainty in the broader economy.

Mortgage Rates Remain High

During a recent episode of the Suze Orman Women & Money podcast, she pointed out that mortgage rates, which are closely tied to 10-year Treasury yields, remain elevated. The Federal Reserve held interest rates steady in its most recent meeting, and Orman doesn't anticipate significant cuts in 2025.

Don't Miss:

• If You're Age 35, 50, or 60: Here’s How Much You Should Have Saved Vs. Invested By Now
• Can you guess how many retire with a $5,000,000 nest egg? The percentage may shock you.

Currently, the average 30-year fixed mortgage rate hovers around 7.03%, according to Bankrate. For a home priced at $404,400—the median for existing homes sold in December —buyers making a 20% down payment could face a monthly mortgage payment of approximately $2,159. That accounts for about 26% of a median-earning family's income of $97,800.

Since mortgage rates did not respond to the Fed's rate cuts last year, Orman believes they will likely remain high in the near future. 

This aligns with insights from industry experts like Calixto Garcia-Velez, CEO at BanescoUSA, who explains, "The 30-year mortgage rates are tied to the 10-year Treasury bonds, and long-term Treasury bonds have been increasing. Therefore, residential loan rates haven't been falling as much as people have expected."

Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — you can become an investor for $0.80 per share today.

Why Waiting Until September Might Be a Smart Move

Orman suggests that homebuyers who need to finance their purchase should consider waiting a few more months.

"If I were going to be buying real estate right now and I had to take out a mortgage. I have to tell you, I think I would probably wait till about September to do so," Orman said on her podcast. "I would not be rushing to go ahead and buy right now at a 7% interest rate."

The logic behind her advice is simple: if mortgage rates hold steady or even decline slightly later in the year, buyers could lock in a more favorable rate, reducing their overall borrowing costs. Additionally, market conditions could shift, offering better opportunities for buyers willing to wait.

That said, Orman acknowledges that there are situations where buying now could make sense. "Maybe you can get a steal of a deal, and it makes sense for you to do it right now. But if you're not in a serious hurry, you might want to just wait."

What About Sellers?

For those looking to sell, Orman notes that homeowners who locked in ultra-low mortgage rates in past years may hesitate to list their properties, as they would likely have to finance a new home at today's much higher rates.

"If you have to sell and buy something else and you need to get a new mortgage, you might want to think about it as well," Orman cautioned.

Trending: This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, with minimum investments as low as $100.

Market Uncertainty and Future Projections

The broader economic landscape adds another layer of uncertainty. Treasury yields have been rising as inflation remains above the Federal Reserve's 2% target, contributing to stubbornly high mortgage rates. Additionally, speculation over future government policies, including the potential impact of another Donald Trump presidency, has led some analysts to believe that deficits could further pressure Treasury yields and mortgage rates upward.

The Bottom Line

Orman's advice boils down to timing. While no one can predict exactly where rates will go, buyers who are not in immediate need of a home may benefit from waiting a few months to see if conditions improve. However, those who find a good deal or who are purchasing with cash may still find opportunities in today's market.

As always, prospective buyers should carefully evaluate their personal financial situation and consult with a trusted financial advisor before making any major real estate decisions.

Read Next:

• Bezos' Favorite Real Estate Platform Launches A Way To Ride The Ongoing Private Credit Boom
• The average American couple has saved this much money for retirement — How do you compare?