Have You Said....."I'm Just Going To Wait For The Market To Cool Down"?
PLEASE READ BEFORE IT'S TOO LATE
We talk with buyers and sellers daily. For those who are waiting the resounding reason, on the front end, is a good one. The market is just too crazy and I'm going to wait until prices (and the market) cool down.
Please take a long hard look at the numbers below and decide for yourself if the short term market pain of today is worth the long term extended pain for a long future.
Market Price Projection - Over the next four years home prices are projected to RISE. This was projected before the huge increase in inflation. So these numberes will likely be adjusted soon to account for a more steady appreciation. Currently home prices are projected to go 35% in the next five years! WOW!
Let's just say home prices stay steady and do not appreciate. The next factor is a dagger right in the middle of the heart of the 'I'm going to wait' strategy.
Interest Rates - in the past 90 days mortgage interest rates have increase 1.25%. Let's put some match to this for perspective because the FED has made it crystal clear that these increases are just beginning. Projections are 9 increases over the next year. (NINE MORTGAGE INCREASES OVER THE NEXT YEAR) ----- Click for Mortgage Calculator
$400,000 MORTGAGE - INTEREST rate 3.25% (est tax at $3k and ins at $1k) - Monthly payment) $2074.15
$400,000 Mortgage - Interest rate 4.50% (est tax at $3k and ins at $1k) - Monthly payment) $2360.07
Oh No....Interest Rates Are Rising!
Below is information compiled from multiple real estate economists/strategists. It is hoped this full article can be helpful to you in your discernment to buy (a home) now or buy later
“I anticipate the 30-year fixed mortgage rate to hover around 3.9 percent next month, with the 15-year fixed rate between 2.9 percent and 3.0 percent,” says Nadia Evangelou, director of forecasting for the National Association of Realtors. “Rapidly rising inflation and expectations that the Fed will raise short-term interest rates as soon as this month will continue to push up mortgage rates. March is also the month when the Fed’s asset purchase program is set to end. That means the current economic stimulus policies will conclude very soon.”
Greg McBride, Bankrate’s chief financial analyst, foresees even costlier rates.
“With inflation figures continuing to surprise to the upside, mortgage rates will remain above 4.0 percent on the 30-year fixed and above 3.25 percent on the 15-year fixed mortgage in March. The wildcard is the extent to which news like Russia’s invasion of Ukraine takes center stage, as the impact on mortgage rates could go either way,” he says.
The world is intently focused on Eastern Europe and images of bombs, tanks and troops. Sanctions against Russia could shape the direction rates head in the forthcoming weeks.
“Tensions between Russia and Ukraine might affect global markets. This could cause mortgage rates to fall, as more investors would move from stocks into the safety of bonds,” adds Evangelou. “However, the Fed will likely raise short-term interest rates as soon as this month, thereby moving up...