What is the Cost of Waiting Until Next Year to Buy?
We recently shared that over the course of the last 12 months, home prices have appreciated by 7.0%. Over the same amount of time, interest rates have remained historically low which has allowed many buyers to enter the market.
As a seller, you will likely be most concerned about ‘short-term price’ – where home values are headed over the next six months. As a buyer, however, you must not be concerned about price, but instead about the ‘long-term cost’ of the home.
The Mortgage Bankers Association (MBA), Freddie Mac, and Fannie Mae all project that mortgage interest rates will increase by this time next year. According to CoreLogic’s most recent Home Price Index Report, home prices will appreciate by 4.7% over the next 12 months.
What Does This mean as a Buyer?
If home prices appreciate by 4.7% over the next twelve months as predicted by CoreLogic, here is a simple demonstration of the impact that an increase in interest rate would have on the mortgage payment of a home selling for approximately $250,000 today:
Bottom Line
If buying a home is in your plan for 2018, doing it sooner rather than later could save you thousands of dollars over the terms of your loan.
To view original article, please visit Keeping Current Matters.
Lower Mortgage Rates Are Bringing Buyers Back to the Market
The upcoming months should see a return of buyers, as mortgage rates have been coming down since mid-November.
Where Will You Go If You Sell? You Have Options.
By working with a trusted real estate agent, you can be confident you’re making the most educated, informed decision.
Why It Makes Sense to Move Before Spring
If you’re ready to buy a home, right now is the best time to do so before your competition grows and more buyers enter the market.
The 3 Factors That Affect Home Affordability
When you think about affordability, the full picture includes more than just mortgage rates and prices. Wages need to be factored in too.
Want To Sell Your House? Price It Right.
In today’s more moderate market, how you price your house will make a big difference to not only your bottom line, but to how quickly your house could sell.
Pre-Approval in 2023: What You Need To Know
To understand why it’s such an important step, you need to understand what pre-approval is and what it does for you.
Think Twice Before Waiting for 3% Mortgage Rates
It’s important to have a realistic vision for what you can expect this year; advice of expert real estate advisors is critical.
Today’s Housing Market Is Nothing Like 15 Years Ago
In the 2nd half of 2022, there was a dramatic shift in real estate causing many people to make comparisons to the 2008 housing crisis.
The Truth About Negative Home Equity Headlines
News headlines focus on short-term equity numbers and fail to convey the long-term view.
What Experts Are Saying About the 2023 Housing Market
2023 likely will become a year of long-lost normalcy returning to the market with mortgage rates stabilizing.