I’ve been talking to many clients about 2019 and their housing plans. Some are planning to buy soon, some are thinking about waiting a year – or maybe until next summer. No one truly knows for sure what will happen next year but here are some thoughts by some experts.
National home prices have increased by 5.4% since last year at this time. Interest rates have stayed low, so it hasn’t impacted housing as much as it could have. In the last couple of months, we have seen interest rates climb to the highest rates in several years. Interest rates are about a full point higher than they were a year ago. The Mortgage Bankers Association, Fannie Mae and Freddie Mac all expect interest rates to increase in 2019. Corelogic anticipates home prices to increase 4.8% over the next 12 months.
What Does This Mean as a Buyer?
If home prices appreciate by 4.8% over the next twelve months as predicted by CoreLogic, 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:
For those looking at buying in the next year, these are numbers that may make you think about buying sooner than later! We don’t know for sure what will happen with interest rates and home prices, but this does give you an idea of what it may cost you if you wait. Let us know if we can help you figure out a plan for you to buy next year!
(Some of this information is from our blog at Keeping Current Matters)
Leslie Vanderwerf, NMLS ID#335509, American Mortgage & Equity Consultants, Inc., An Equal Housing Lender, NMLS#150953 – Email – Website
