513-368-3751 to Connect with a Top Real Estate Agent in Cincinnati
|Newest Listings||Map Search||Contact Us|
|West Chester||Liberty Township||Mason|
The interest rate you pay on your home mortgage has a direct impact on your monthly payment. The higher the interest rate, the higher the monthly payment will be. That’s why it’s important to know where interest rates are headed when deciding whether to buy a home now or wait.
The graph below illustrates the projections of where interest rates are headed, based on Freddie Mac’s U.S. Economic & Housing Marketing Outlook. As you can see, they are projected to increase steadily over the next 12 months.
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 would wind up paying considerably more for their next home.
What does this mean for you? A half percent (.5%) increase in your interest rate can significantly increase your monthly mortgage payment. Based on the projections of where interest rates are headed, the sooner you buy a home the better. Waiting could cause you to wind up paying considerably more for your next home. Contact us today to evaluate your ability to buy your dream home.