Monday, December 18, 2017

What is the Cost of Waiting Until Next Year to Buy?

What is the Cost of Waiting Until Next Year to Buy? | Keeping Current Matters
Have you been putting off buying a home?
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 5% 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:


 What is the Cost of Waiting Until Next Year to Buy? | Keeping Current Matters


It really can make a difference, why are you waiting? Get in touch with me today and let's meet to figure out the best scenario for you.