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What Is The Cost Of Waiting Until Next Year To Buy?

2018 buy a house McWright Real Estate Company

Werecentlyshared that over the course of the last 12 months, home prices have appreciated by 7.0%. Over the same amount of time, 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.

TheMortgage Bankers Association(MBA), Freddie Mac,andFannie Maeall project that mortgage interest rates will increase by this time next year. According toCoreLogic’smost recentHome Price Index Report, home prices will appreciate by 4.7% over the next 12 months.

What Does This Mean as a Buyer?

If home prices appreciate by 4.7% over the next twelve months as predicted byCoreLogic, 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 is the Cost of Waiting Until Next Year to Buy? | Simplifying The Market

Bottom Line

If buying a home is in your plan for 2018, doing it sooner rather than later could save you thousands of dollars over the terms of your loan.

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