You’ve heard that “time is money” and it actually applies to our current real estate market. If you’re considering buying someday soon, there’s a definite cost to waiting.
For most people, the true cost of purchasing a home boils down to the property’s purchase price and the interest rate you can secure for your loan. Over the next year, both those factors will be on the rise:
CoreLogic’s Home Price Index predicts home prices to climb over 5%.
Freddie Mac’s most recent Economic Commentary & Projections Table expects interest rates to rise almost a full percentage point.
That might not sound like it’d have a significant impact, but let’s take a look at an example of a $250,000 home now versus a year from now. Those increases result in an extra $188.50 in your monthly payment. That’s $2,262 a year and a total of $67,860 over the life of a 30-year loan! This is, by no means, reason to panic. But it’s absolutely something to consider if you’re thinking of buying in the near future.
I’d love to answer any questions you have and help you formulate the best strategy for getting you into your ideal home!