Whether you are a first time buyer or looking to move up to your next home, you should consider the housing experts’ projections in two major areas – home prices and mortgage rates.
The housing market is still in the early stages of recovery, and a rise in interest rates can make a big difference in your monthly mortgage payment. Even a very modest increase from 3.9% to 4.5% on a $200,000 home will increase monthly payments more than $70.
Most real estate analysts concur that by the end of the year there will be a 4% appreciation in home values and an increase of a full point in interest rates. While interest rates will still be low, now is a great time to take that leap and invest in your future.
If you have been thinking about buying a home, now is the time; supply is high, interest rates are low, and housing prices are lower than they are expected to be in the upcoming months. As more homes are purchased, supply decreases, so there is the potential for home prices to continue to increase.
While it is often wise to wait and find the best possible deal (especially with large purchases), it is not necessarily prudent in the current real estate market. I encourage potential home buyers to be decisive and to act quickly when you find the property you have been looking for.
Below is a chart that puts a price tag on the cost of waiting just eight months.
Please feel free to add your thoughts and comments below. If you have any questions, please contact me directly and I will be happy to discuss your particular housing concerns and needs.