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.
Thinking of Selling? Now May Be the Time.
The market is entering the year like a lion. There’s no indication it will lose that roar, assuming inventory continues to come to market.
Entry-Level Homeowners Are in the Driver’s Seat
Whatever you choose, if you’re moving out of an entry-level house, you’re likely going to be in the driver’s seat as a seller.
Opportunity in the Luxury Market This Year
With a strong economy and a backdrop set for moving up this year, it’s a great time to explore the luxury market.
Interest Rates Over Time
With interest rates hovering at near historic lows, now is a great time to look back at where they’ve been, and how much they’ve changed over time.
The #1 Misconception in the Homebuying Process
If you’re thinking about purchasing a home, realize that homes are still affordable even though prices are increasing.
The Many Benefits of Aging in a Community
“Aging-in-place” definitely has its advantages, but it could mean getting “stuck-in-place” too. We can help you figure it all out!
How Trusted Professionals Make Homebuying Easier to Understand
There are many possible steps in a real estate transaction, but they don’t have to be confusing.
The Overlooked Financial Advantages of Homeownership
With a mortgage, you can keep your monthly housing costs steady and predictable.
How the Housing Market Benefits with Uncertainty in the World
“Amid uncertainty, the house-buying power of U.S. consumers can benefit significantly.”
The #1 Reason to List Your House Right Now
The success of the U.S. residential real estate market, like any other market, is determined by supply and demand.