Given how frequently interest rates and housing prices can fluctuate, knowing when to take the plunge on buying a home isn’t always easy—but that doesn’t mean you shouldn’t.

If you’re beginning to feel like you might be ready to stop renting and make your homeownership dreams a reality, here’s what to know to help you take that first step.

What affects the market?

Numerous political and economic factors can shape the housing market, including the rates set by the Federal Reserve, currency inflation, demand for homebuying, supply of properties available for purchase, and even fast-changing dynamics like unemployment rates.

Look, for example, to the impact of the pandemic. At the beginning of it, one of the primary concerns was the effect a prolonged shutdown could have—both on individuals and on the broader economy. Among the solutions rolled out to support consumers was a Fed funds rate cut, which resulted in unprecedented low interest rates. Homeowners and homebuyers alike took advantage, with the former refinancing their existing mortgages and the latter applying for loans now that they were more able to afford the houses of their choice.

Postpandemic, the landscape shifted again, when a white-hot economy featuring low unemployment and higher wages triggered inflation. To counter this, the Fed stepped in with a series of interest rate hikes designed to slow it down. The problem? The move also slowed the real estate market. Homeowners who may normally have been looking to sell instead resisted giving up their favorable pandemic-era loans for ones with a much higher interest rate. Such changes contributed to housing shortages in most of the country’s major regions, driving up demand and, in turn, home prices.

All the above demonstrates how greatly the market can ebb and flow depending on current conditions, which makes staying informed crucial if you’re considering wading into the homebuying waters.

The answer isn’t to wait

The reality is that it’s impossible to predict interest rates and housing prices. Sure, there’s always a chance that waiting to buy could be to your benefit. However, that’s never guaranteed, and you also risk getting even worse numbers down the line.

So how do you proceed without a crystal ball? The answer is simple—just go for it! Don’t miss out on years without your dream home or an opportunity to build equity out of fear. As long as you act decisively and make the appropriate arrangements, such as by seeking preapproval and a solid purchase offer, you can put yourself in a position to act quickly.

Consider all strategies and options

Though there may be little you can control when it comes to the market, there is still plenty you can do to help safeguard your finances. For one, take any necessary steps to improve your credit score, debt-to-income ratio (DTI), and even your income. The better these figures are, the less of a risk you will seem to lenders and the more favorable rate you may receive.

Further, save up more for your down payment if possible. By reducing the amount you finance up front, you subsequently lessen the amount of interest you’ll have to pay over the life of your loan, regardless of your rate. You can also look at alternative financing options from a conventional loan, such as an adjustable-rate mortgage (ARM) or an assumable mortgage, which allow you to finance some of your purchase at the homeowner’s existing rate.

Equally key is shopping with a real estate agent. Such experts stay well informed of present trends and challenges and will be able to answer any questions you may have. Relying on their guidance, you can gain more peace of mind that you’re making informed decisions suitable for your unique situation and goals.

Let’s say you move forward with your home purchase and then interest rates do fall. Don’t worry—you aren’t without options. Primarily, you may be able to refinance, depending on factors such as how long you’ve had your mortgage. This will give you a new home loan with an interest rate that reflects improved market conditions. Just keep in mind that it’s likely you’ll have to pay additional fees and closing costs on your new loan and may extend your repayment timeline. Work with your lender or financial advisor to crunch the numbers and verify that a refinance would make sense for your specific situation.

Whatever strategy you do choose, stay informed about market trends and periodically review your mortgage terms; feel free to tap your agent as a resource. Keep an eye on this data, and you can better identify opportunities to optimize your financial situation.

In today’s complex real estate market, putting off buying a house can leave you open to higher costs, delayed benefits, and more frustrations later. Consider your financial readiness, then reach out to a real estate agent, who can help you make the right decision for you—one that’s in your best interest now and in the future.