When a question comes up repeatedly, that means it’s time for a blog about it.
Lately I have heard tons of frustration from clients who are trying to buy a house, but the inventory is so low and pitiful and expensive that they are stepping away from the hunt. Sometimes for a short mental health break, other times it’s a longer hiatus.
Either way, they have the same question: “What do I do with this money I have saved for a down payment and will not use immediately?”
Side note to all my realtor friends who are rabid consumers of this newsletter: I am NOT suggesting people give up on their homeownership dreams. This is for people who have hit pause on the home search on their own volition.
So, what to do with all that cash you have stashed? See below for a handy chart.
The good news about the higher interest rates that have made your house hunt miserable is that CDs and money markets are now paying around 5%. You don’t have to resign yourself to no returns to keep your money ready for a soon-ish down payment. However, if you plan to saddle up on Zillow anywhere in the next 5 years, you still need to keep that down payment money protected from stock/bond market dips.
Take heart! Your house is out there, and you will find the right home.
