Is Waiting to Buy Your Road to Nowhere?
For several years now rising home prices in Keller, Southlake, Trophy Club and other North Texas areas have forced home buyers to expect less and less for their home buying dollars. Now rising interest rates appear be an additional factor those considering a home purchase will have to navigate as well. Just like rising home prices, rising mortgage interest rates have a direct impact on your monthly payment and which homes you can qualify to buy.
And each step up in rates, especially when combined with increasing housing prices, bodes poorly for those sitting on the fence.
Where are mortgage interest rates going in 2018? Below are the projections from Freddie Mac’s U.S. Economic & Housing Marketing Outlook. A steady increase of interest rates throughout the next 12 months is projected. And each step up, especially when combined with increasing housing prices, bodes poorly for those sitting on the fence. According to CoreLogic’s latest Home Price Index, national home prices have appreciated 7.0% from this time last year and are predicted to be 4.2% higher next year. In the North Texas areas, estimates of home price increases typically range from between 5-7% for 2018. If both interest rate and price trends rise as predicted, families in the area will be paying considerable more, or, be forced to choose lower their expectations of what they will get in a home.
Let’s get together to evaluate your ability to purchase your dream home. Give me a call today and I'll help you figure out how increasing mortgage rates and home prices is affecting your purchasing power, and what your options may be.