Interest rates are low, but steadily on an upward trend. Homes are gaining value in most areas so now is the best time to make your move into a new home! If you wait until next year, chances are you will pay a lot more.
For example: a home purchased today for $200,000 at 4.5% interest your mortgage would be $810.70/month (principal and interest only – add in 1/12 of the yearly taxes, HOA fees and insurance for a true monthly payment).
If rates go up by 1% and housing prices rise by 2% (which is a conservative estimation) that same house will cost 204,000 next year and at 5.5% interest your mortgage payment goes up to $926.63/month (principal and interest).
This is a simple illustration showing the value of buying a home today while rates are historically low and home prices haven’t caught up to the demand. Yes, there are a lot of buyers out there looking for a home and the inventory of homes for sale is lower than it’s been in years. Basic economic rules of Supply and Demand tell us that the pent up buyer demand will put an upward pressure on home prices in the next few years. This is why you need to work with a qualified Realtor to find your perfect home at a great price!