Thinking about buying a new home in the next few years? Moving up your timetable could save you money. As of February 2018, opens in a new windowZillow states home values have risen 7.6% in the last 12 months. It also predicts homes values will continue to rise another 3.5% in the next year. Each area of the country is different but the one thing you can count on is that when home prices rise you get less home for your money.
Interest rates have also been steadily climbing. The opens in a new windowEconomy Forecast Agency predicts rates to climb above 5% in 2018 and above 6% in 2019. Each small rise in rate can cost you hundreds of dollars in additional interest payments each year. To illustrate the point, the chart below shows the impact a rise in rates can have on your monthly payment.
Keep in mind, no one can accurately predict where rates and homes prices will be in the future. If a new home fits into your life plan, why wait? Now is a great time to buy.
The information voiced in this material is for general information and is not intended to provide specific advice or recommendations for any individual.
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