Werecentlyshared 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.
TheMortgage Bankers Association(MBA),Freddie Mac,andFannie Maeall project that mortgage interest rates will increase by this time next year. According toCoreLogic’smost recentHome 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 byCoreLogic,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 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.
Author:Lynda Western Phone: 602-919-0857 Dated: May 9th 2018 Views: 107 About Lynda: A family oriented person, Lynda has a passion for helping people in unfortunate situations. An Ariz...
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The partners of Re/Max Preferred Choice specialize in both the purchase and sale of residential and commercial real estate, as well as providing property management services. We have been in business since 1996 and have a long history of providing exceptional customer service to our agents.
One of the first decisions that must be made in the home buying p
"Thank you Justin Schlegel for your wonderful help in the sale of our AZ property. We appreciate your professionalism, competence, and hard work as our real estate agent. You did an outstanding job applying your savvy and judgement in various ways, including your market research for the listing price, and your efforts to identify and interact with prospective buyers and their agents. Selling this home presented several occasions when your assistance was most needed, and we appreciate all that you did to perform in a stellar manner. As a result, we had a superb experience working with you and your above and beyond efforts are second to none."
Chad & Elizabeth in Peoria, on behalf of Justin Schlegel