What Will Happen If You Wait One Year To Buy?
Home prices nationwide have increased by 6.7% year-over-year. During the same time frame, interest rates have also stayed historically low, which has provided an opportunity for many buyers to enter the real estate market.
As a seller, you may be focusing your attention on ‘short-term price’ – where home values are trending over the next six months.
As a buyer, however, you should not focus on price; rather, you should be concerned with the ‘long-term cost’ of the home purchase.
The Mortgage Bankers Association (MBA), Freddie Mac, and Fannie Mae all predict that mortgage interest rates will go up by Next Spring 2019. According to CoreLogic’s most recent Home Price Index Report, home prices are expected to appreciate by 5.2% during the next twelve months.
So, what Does All This Mean To A Home-Buyer?
If during the next twelve months, Fort Lauderdale homes and Fort Lauderdale Condos appreciate by 5.2% as expected by CoreLogic, below is a graphic of the impact that an interest rate increase would have on the mortgage payment of a home selling for approximately $250,000 in today’s market.
Fort Lauderdale Neighborhoods
Disclaimer:The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. John Sabia PA and Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. John Sabia PA and Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.