NEW YORK – The housing market has been crazy for the past several years, and the recent spike in interest rates has only exacerbated the situation for clients who are looking to buy – and thinking about borrowing to do so.

Here are some ways they can stay in the game and not let the pursuit of their American Dream turn into a nightmare.

Plunge ahead

It’s understandable if concerned clients look at the high housing prices, rising rates and low housing supply and decide to hold off on buying a new home for a while, or for forever. But there is no guarantee that any of those variables are going to become more buyer-friendly any time soon. And in the meantime, clients are spending time in a house, neighborhood or city other than where they would rather be – or worse yet, spending money on rent that they’ll never get back.

The obvious initial solution is for clients to look for a home that is smaller than they originally intended, or perhaps located in a neighborhood in which demand is not so high. They could also buy a home that needs significant updating or remodeling, and endure those conditions until they can afford to make the improvements.