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What If I Wait Until Next Year To Buy A Home?

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What If I Wait Until Next Year To Buy A Home?

As a seller, you will be most concerned aboutshort term price where home values are headed over the next six months. As either a first-time or repeat buyer, you must not be concerned only about price but also about thelong term costof the home.

Let us explain.

There are many factors that influence the cost of a home. Two of the major ones are the homes appreciation over time, and the interest rate at which a buyer can borrow the funds necessary to purchase their home. The rate at which these two factors can change is often referred to asThe Cost of Waiting.

What will happen over the next 12 months?

According toCoreLogics latestHome Price Index, prices are expected to rise by 5.5% by this time next year.

Additionally,Freddie Macsmost recentEconomic Commentary & Projections Tablepredicts that the 30-year fixed mortgage rate will appreciate to 4.5% in that same time.

What Does This Mean to a Buyer?

Here is a simple demonstration of what impact these projected changes would have on the mortgage payment of a home selling for approximately $250,000 today: