What is the Cost of Waiting Until 2019 to Buy 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. FREE DOWNLOAD: The Ultimate Home Buyer’s Guide 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. Follow The Shannon McCarthy Team on Facebook, Instagram, Twitter and LinkedIn and subscribe to our monthly HOME ADVICEtm eNewsletter for articles like this delivered straight to your favorite media platforms.