A Historic Rebound for the Housing MarketPending Home Sales increased by 44.3% in May, registering the highest month-over-month gain in the index since the National Association of Realtors;(
Waiting A Year To Buy Your Home Could Cost You
National home prices increased by 5.4% since this time last year. Over that same time period, interest rates remained near historic lows, allowing many buyers to enter the market and lock in low rates.
Team Nest Builder knows that, as a home seller, you’re probably most concerned about ‘short-term price’ – where home values are headed over the next six months. As a home buyer, however, you should instead be concerned about the ‘long-term cost’ of the home.
The Mortgage Bankers Association (MBA), Freddie Mac, and Fannie Mae all project in increase in mortgage interest rates by this time next year. According to CoreLogic’s most recent Home Price Insights Report, home prices will appreciate by 4.8% over the next 12 months.
What Does This Mean as a Buyer?
Here is a simple demonstration of the impact that an increase in interest rates would have on the mortgage payment of a home selling for approximately $250,000 today, if home prices appreciate by 4.8% over the next twelve months (as predicted by CoreLogic):
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. Call Team Nest Builder’s Lynn Garafola at 973-222-3777 today! Interested in a FREE downloadable Home Buyer’s Guide? Click HERE!
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