Home Prices across the country are on the rise over the past 12 months. In the same amount of time interest rates on mortgages have stayed historically low. This is allowing many buyers to enter the market.
Sellers Should be concerned about the price increase, at what price will your home sell for in 6 months? Buyers will look at something completely different, the long-term price. What will happen to the cost of my home over the length of time I own my home.
Freddie Mac, The Mortgages Bankers Association, and Fannie Mae are predicting mortgage rates will increase by late next year. Alos looking at some projections of the housing market see it rising another 4.7%.
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:
If you are looking to purchase a home in 2018, it might save you thousands of dollars over the term of your loan if you do it sooner than later.