For a number of yours now the rallying cry in the mortgage industry was that rates are moving. Don't get left behind! That went on for about 4 years. Every year the talk was how the FEDs will raise rates. And every year that never really materialized.
FEDs left the rates alone. In fact, in some years, the rates even went done further.
Well, this year was no different. Everyone in the mortgage industry was telling anyone that would listen that the rates are going. And it finally happened. Rates did indeed started going up and I am here to say that it will most likely continue to go
up in the coming months, maybe years.
So if you were to add the rate increase and the continuing increase in home prices, chances are most homebuyers, will be able to afford less and less in the coming months. That $700,000 home that you could afford last year may not look as affordable now.
Most likely you would have to set your price targets lower to be able to buy a home. Luck of the Irish has finally run out? #brokermac
- The “Cost of Waiting to Buy” is defined as the additional funds it would take to buy a home if prices and interest rates were to increase over a period of time.
- Freddie Mac predicts that interest rates will increase to 4.8% by this time next year, while home prices are predicted to appreciate by 4.8% according to CoreLogic.
- Waiting until next year to buy could cost you thousands of dollars a year for the life of your mortgage!