Can’t decide whether to buy a home this year or wait another year or two? If home prices and mortgage rates increase in the next year or two, homebuyers could end up with significantly less buying power than they have today.
Today’s mortgage rates are near historic lows. However, they aren’t expected to stay that way. Various housing groups and economists are predicting mortgage rates will rise to between 4.5% and 5% by the end of the year.
The National Association of Realtors also is expecting home prices to increase in 2018 by an average of 3.2 percent nationally, with the highest appreciation predicted in the lower price ranges, which are in the most demand. The combination of higher home prices and higher mortgage rates could make for a mortgage payment that’s significantly higher than it would be in today’s market.
There are, of course, many other factors that come into play in the decision to buy a home, such as how long you plan to stay in your home, the stability of your job and how much money you’ve saved up for a down payment and your overall debt load. If you’re thinking about purchasing a home, give us a call, and we’ll help you crunch some numbers.