Rising Interest Rates & Rising Home Prices! Buy Now or Later?
With the first quarter of 2018 in the books, the 30-year fixed rate mortgage is nearing what Freddie Mac predicted it would be in the second quarter. If this pace continues, rates will exceed the five percent mark expected by the end of the year.
The Fed has had its first of an expected three raises for this year and two more are expected in 2019. While these rates are not directly related to mortgages, they certainly have an effect.
Delaying the decision to purchase or refinance could be an expensive missed opportunity. A $270,000 mortgage at 4.44% has a principal and interest payment of $1,358.44 per month. If the rate were to rise one-percent in the next twelve months, the payment would be $1,522.88.
The $164.44 increase would cost a homeowner an additional $13,812.97 in seven years and close to $60,000 over the full term of the loan.
The question facing those thinking of buying a home is “what would you spend $164.44 each month if you had acted sooner to get the lower rate?”
If you are curious to know what your “missed opportunity” could be costing you, try this Cost of Waiting to Buy calculator . Use 0% increase on price change if you are refinancing a home you already own.
If you would like to discuss the impact of rising prices and interest rates in the Dallas-Fort Worth real estate market and/or would like to get started on the home search process for your dream home complete the GET IN TOUCH form on this page and a Real Estate Advisor | REALTOR® from Martin Real Estate Advisors Group | United Real Estate will get in touch with you as soon as possible.