As a seller, you will be most concerned about “short term price” ? where home values are headed over the next six months. As a buyer, you must be concerned not about price but instead about the “long-term cost” of the home.
The?Mortgage Bankers Association (MBA), the?National Association of Realtors,?Fannie Mae?and?Freddie Mac?all projected that mortgage interest rates will increase by?about three-quarters of a percentage point over the next twelve months.
According to?CoreLogic?s?most recent?Home Price Index Report, home prices will appreciate by 5.2 percent over the next 12 months.
What Does This Mean as a Buyer?
Here is a simple demonstration of what impact an interest rate increase would have on the mortgage payment of a home selling for approximately $250,000 today if home prices appreciate by the 5.2 percent predicted by?CoreLogic?over the next twelve months:
For more information, please contact The Olear Team today!