Below is a chart created using Freddie Mac’s U.S. Economic & Housing Marketing Outlook. As you can see, interest rates are projected to increase steadily over the course of the next 12 months.
Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly.
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.
If both the predictions of home price and interest rate increases become reality, families will wind up paying considerably more for their next home.
Even a small increase in interest rate can impact your family’s wealth.
If you have any questions about the home buying process, new home buyer loans, or where interest rates are heading, just call/text me at 602-295-6807 and I can help evaluate your ability to purchase your dream home!
Helping to Make a Difference in Your Life,
Troy Erickson Realtor