May 7 2018 38609 1

Dated: May 8 2018

Views: 243

What If I Wait Until Next Year to Buy a Home?

   First Time Home Buyers, For Buyers, For Sellers, Interest Rates, Move-Up Buyers, Pricing

We recently shared that national home prices have increased by 6.7% year-over-year. Over that same time period, 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 5.2% over the next 12 months.

What Does This Mean as a Buyer?

If home prices appreciate by 5.2% 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:

What If I Wait Until Next Year to Buy a Home? | Simplifying The Market

Bottom Line

If buying a home is in your plan for this year, doing it sooner rather than later could save you thousands of dollars over the terms of your loan.


Blog author image

Barbara Murphy

Barbara Murphy earned her Real Estate License in 1996. Since then, she has apprenticed with some of the industry's top agents and coaches to enhance her understanding of the market and all aspects of....

Latest Blog Posts

SER DUENO DE CASA ES LO MEJOR

Los estadounidenses eligen bienes raíces como la mejor inversión [infografía]  21 21UTC mayo 21UTC 2021  Compradores de vivienda por primera

Read More

Listos Para La Venta De Su Propiedad

Los vendedores están listos para entrar en el mercado de la vivienda 19 19UTC mayo 19UTC 2021 Para los vendedores, Actualizaciones del mercado de la,

Read More

Sin Inventario De Propiedades

Su casa podría ser el oasis en un desierto sin inventario  13 13UTC mayo 13UTC 2021  Para los vendedores, Actualizaciones del mercado de

Read More

Sin Inventorio De Propiedades

Su casa podría ser el oasis en un desierto sin inventario 13 13UTC mayo 13UTC 2021 Para los vendedores, Actualizaciones del mercado de la vivienda, Compradores de casa mas

Read More
Fair Housing Icon NY Fair Housing Notice