As a home seller, you will be most concerned about ‘short-term price’ – where home values are headed over the next six months. As a home buyer, however, you must not be concerned about price, but instead about the ‘long-term cost’ of the home. The Mortgage Bankers Association (MBA), Freddie Mac, and Fannie Mae all project that mortgage interest rates will increase by this time next year. According to CoreLogic’s most recent Home Price Index Report, home prices will appreciate by 4.7% over the next 12 months.
What Does This Mean as a Buyer?
If home prices appreciate by the 4.7% predicted by CoreLogic over the next twelve months, here is a simple demonstration of the impact an increase in interest rate would have on the mortgage payment of a home selling for approximately $250,000 today:
Tony Clark Realtors believes everyone should feel confident when buying and selling a home. We believe that everyone deserves exceptional service and honest guidance thru the changing real estate market. Since 1976, we are the Owensboro Kentucky market expert. The Tony Clark Team are available and ready to be your trusted real estate adviser.
Tony Clark Realtors | 2934 Frederica Street Owensboro, Kentucky | (270) 683-SOLD