What If I Wait Until Next Year To Buy A Home

Dated: 05/07/2018

Views: 67

What If I Wait Until Next Year to Buy a Home? | MyKCM

We 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:

What If I Wait Until Next Year to Buy a Home? | MyKCM

Bottom Line

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.

Blog author image

Jason McLaughlin

THERE WERE TWO THINGS I WANTED TO DO WHEN I GOT OLDER! Number One: Make sure that I had the ability to take care of people in time of need. Number Two: Be involved in real estate. As for ....

Latest Blog Posts

Millionaire To Millennials Owning Your Home Can Help You Retire Sooner

In a CNBC article, self-made millionaire David Bach explained that: “Buying a home is the escalator to wealth in America. Homeownership can also help you retire early, that is, if

Read More

Year One As A Realtor

Over the past few weeks, I have had a fair amount of people reach out to me asking how I was doing in Real Estate. Some were just curious about my progress others were thinking about getting into.

Read More

The Number 1 Reason To Put Your House On The Market TODAY

The National Association of Realtors (NAR) released the results of their latest Existing Home Sales Report which revealed that home sales declined 0.6% to a seasonally adjusted

Read More

Coming Soon Listing In Parker

Have you ever thought of having a beautiful home that looks at the mountains out your front window and the plains from the back? Well, you are in luck with this beautiful 5-bedroom, 3-bath home that

Read More