As a seller, you will be most concerned about ‘short term price’ – where home values are headed over the next six months. As a buyer, you must be concerned not about price but instead about the ‘long term cost’ of the home.
TheMortgage Bankers Association (MBA), theNational Association of Realtors,Fannie MaeandFreddie Macall projected that mortgage interest rates will increase byabout three-quarters of a percentage point over the next twelve months.
According toCoreLogic’smost recentHome Price Index Report, home prices will appreciate by 5.2% over the next 12 months.
What Does This Mean as a Buyer?
Here is a simple demonstration of what impact an interest rate increase would have on the mortgage payment of a home selling for approximately $250,000 today if home prices appreciate by the 5.2% predicted byCoreLogicover the next twelve months:
Author:Kriste Simmons Phone: 931-561-1103 Dated: December 23rd 2015 Views: 237 About Kriste: I am a licensed Real Estate Agent in TN, and KY with Reliant Realty ERA Powered. I have over 18 yea...
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About Kriste Simmons & The Simmons Team of Reliant Realty ERA Powered -931-245-8800
Thank you for choosing The Simmons Team for your real estate needs! We make it our mission to provide you with top of the line services in any type of situation. We specialize in the Clarksville, Montgomery County, Fort Campbell and Hopkinsville areas, but will gladly help you with surrounding areas as well. Our local expertise and wide variety of Real Estate knowledge will benefit you whether you are buying or selling for the first or the tenth time.
"As we began our journey to find a new home in the Clarksville area, we met Mrs. Kriste Simmons. Upon the first meeting with her, she exceeded our expectations. She is always willing to help and go out of her way to get any and all answers you may have, no matter who she needs to call. We closed on our house this morning, and from start to finish the entire process has been beyond anything we could of hoped for. We will recommend everyone we know to Ms. Simmons."