Visiting Open Houses This Weekend? Well, What If I Wait Until Next Year To Buy A Home?

I 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:

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. The best time to sell  anything is when  demand is high, and supply is low. If you are currently in a starter or trade-up house that no longer fits your needs and you are looking to step into a  luxury home, now’s the time to list your house for sale and make your dreams come true. Call us today  714.343.9294 and  visit stovallteam.com  The Stovall Team places a premium on customer service, drawing on more than 60 years of combined experience and out-of-the box  thinking to ensure that their Team  provides the best customer experience in the business.