86% of Americans Think It's a Bad Time to Buy a Home. 5 Reasons You Should Anyway

Pessimism about the housing market sure seems to come naturally to a lot of us these days. And it's not so surprising -- we're still struggling with a lack of supply of homes for sale. And to add insult to injury, the average rate on a 30-year fixed mortgage loan is 6.67% as of this writing, per Freddie Mac. That's a far cry from the 3% rates of 2021 and early 2022.

Recently, Fannie Mae data found that only 14% of consumers think now is a good time to become a homeowner. Are the other 86% right? Should you avoid buying a house right now? If you can say yes to the following five conditions, buying could still be a good idea for you.

1. Your credit is in good shape

First and foremost, you've got to consider the state of your credit if you're seriously considering buying a house. Remember, the days of 3% mortgage rates are behind us now, and you're likely to pay at least double that if you're intending to buy sooner rather than later. The better your credit profile, the more likely you are to snag the best rate available from a mortgage lender.

The commonly accepted minimum FICO® Score to be approved to buy with a conventional mortgage loan is 620 (you can be approved with a score as low as 500 if you're getting an FHA loan), but the higher your credit score, the better chance you'll have to save money. If you've got a credit score of 700 or better, you could be in good shape to buy.

2. You can swing the costs of homeownership

You may have the credit, but have you run the numbers for how much your ongoing costs will rise if you become a homeowner? It's crucial to recognize that the cost to buy (more on that below) and the cost to own a home are different. Those costs of homeownership entail quite a bit. You'll be responsible for annual property taxes, homeowners insurance, and ongoing maintenance and repair costs. If you can fit those expenses into your budget, buying could be right for you.

3. You've got money saved for the buying process

We talked about ongoing costs, but there's also the upfront expenses of buying a house. Your down payment is likely to be the biggest chunk of this -- if you can put down 20% of the home's purchase price, you'll avoid extra costs in the form of private mortgage insurance.

You've also got to cover closing costs on your loan, the whole moving process (DIY is cheaper, but hiring movers can make it so much smoother), and anything your new home might need immediately. Is this money good to go? Consider proceeding with a home purchase.

4. You're planning to stay awhile

Buying a house and then turning around and selling it in short order is a great way to lose money in the process. Experian notes that five years is a good target to remain in a home before selling -- in many markets, it'll take about this long for the house to appreciate enough that you won't end up selling it for less than you owe, once you subtract closing costs, real estate agent commission, and capital gains taxes. If you intend to buy a home and live there for a good long while, don't be put off by the current market.

5. You truly want to

It's all well and good to consider the financial aspects of buying a home -- and oh, you absolutely should. Don't buy a house if you're broke, because even if you somehow get approved for a mortgage loan, everything could quickly go sideways on you (sincerely, someone who knows).

But don't forget to think about the less-tangible reasons to buy. Are you longing to turn four walls and a roof into a real home? Are you tired of hearing loud neighbors through your apartment walls or floors and dealing with a landlord -- or even just not being able to do whatever you want with a house? Then you should buy, if you can reasonably manage the financial side of it.

Buying a house is a very personal decision, but I hope the insights I've given you here will help you make the right call. If your personal finances can handle the purchase and ongoing costs, and you are longing for a place to call home, becoming a homeowner might just be right for you.