Here's a look at the forecast for price and interest rates and what it may mean for you.
Whether you are a first time or a move-up buyer, there are two factors that will impact the amount of house you can afford in your price range: home prices & mortgage rates.
Let’s look at what the experts are predicting over the next twelve months for these two areas:
Over 100 economists, real estate experts and investment & market strategists were recentlypolledas a part of theHome Price Expectation Survey. They were asked to project where home prices are headed. The average value appreciation projected over the next twelve-month period is approximately 4.4%.
MORTGAGE INTEREST RATES
In the latestEconomic & Housing Market OutlookfromFreddie Mac, they predict that the 30-year fixed mortgage rate will be 4.7% by this time next year. As of last week, the Freddie Mac rate was 3.69%.
What does this mean to you?
If you are afirst-time buyercurrently looking at a home priced at $250,000, this is what it could cost you on a monthly basis if you wait until next year to buy:
If you are amove-up buyercurrently looking at a home priced at $500,000, this is what it could cost you on a monthly basis if you wait a year to buy:
With both home prices & interest rates projected to increase, waiting to buy could put a serious dent in your family’s wealth.
Some industry experts are saying that the housing market may be headin
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