What If I Wait Until Next Year to Buy a Home?
So…What If I Wait Until Next Year to Buy a Home? We recently shared that national home prices have increased by 6.7% year-over-year. Over that same time period, interest rates have remained historically low which has allowed many buyers to enter the market. As a seller, you’ll likely be most concerned about ‘short-term price’ – where home values are headed over the next six months. As a buyer, however, don’t be concerned about price, instead, the ‘long-term cost’ of the home. The Mortgage Bankers Association (MBA), Freddie Mac, and Fannie Mae all project that mortgage interest rates will increase by this time next year. According to CoreLogic’s most recent Home Price Index Report, home prices will appreciate by 5.2% over the next 12 months.
What Does This Mean as a Buyer?
If home prices appreciate by 5.2% over the next twelve months as predicted by CoreLogic, here is a simple demonstration of the impact that an increase in interest rate would have on the mortgage payment of a home selling for approximately $250,000 today:
What If I Wait Until Next Year to Buy a Home?
Bottom Line
If buying a home is in your plan for this year, doing it sooner rather than later could save you thousands of dollars over the terms of your loan.
Call Us Now To Sell Your Home… Office: 909.985.9392 or Text Us: 714.657.6634
76% Of Consumers Prefer Renting to Owning A Home in Current Economic Climate
Freedom from high maintenance costs are top of mind concerns for consumers that are choosing to rent and not buy in this current economy. Financial concerns, rise in unemployment have many Americans playing it as safe as they can.....
Uma is Bailing Out of Greenwich Townhouse…for $14.5Million
Actress Uma Thurman is reportedly selling her Greenwich Village townhouse for $14.2 million and only the fit and energetic should apply as new owners. Thurman’s townhouse is 25 feet wide and five stories tall — with no elevator in sight. It is now apparent how Uma...
8.4 Months Of Homes On The Market And Growing!
What does that mean? "Total months’ supply increased to 8.4 from 8.1 in March, driven by an 11.5% increase in absolute inventories. This reflects a larger increase than the typical 6% rise in inventories from March-April, as we think people listed more homes for sale...
65% Or 84 Million Homes Drop in Value! Equals Short Sales..Strategic Default Short Sales..Foreclosures
Looming Defaults Likened To An Oil Spill..Cap New Defaults But There's Still A Big Mess To Clean Up!
Delinquent Loans…Loans In Foreclosure…What's the Real Number?
By: Diana Olick CNBC Real Estate Reporter What do you do when a certain economic indicator is just so far out of whack that whether the weather is cold or whether the weather is hot, we'll be bewildered whatever the weather, whether we like it or not? Such is the case...
Failing Loan Mods Force More Foreclosures…More Shadow Inventory?
"Underclass" Growing; 40 Million Americans on Food Stamps
When we think of America, we think of a society thats booming and robust, a country of ambition and opportunity of explorers with the attitude of "Go Where No Man Has Gone Before!" Everyday we listen to this site for up to date information on the world of finance......
Change the Changeable
I'm certain there are times that you've looked back on a moment or event in your past and felt anguish for one reason or another. Kris and I have done this many times, examining what we should have done or could have done differently. Here's some ideas for you to put...
Bank of America, JP Morgan Chase, Wells Fargo and CitiMortgage..Loan Mods Doomed?
By: Diana Olick CNBC Real Estate Reporter Much like America's waistlines, the Treasury Department's monthly report on the Home Affordable Modification Program continues to grow. What started as a four-page report has now reached ten pages, with the latest addition to...
A Pictorial From The White House…
A break from the Housing Stuff...Here are some just released photo's from the White House...Hit this link! A break from the Housing Stuff...Here are some just released photo's from the White House...
According to The Journal (WSJ)…U.S. Housing Inventories Are Up…With More To Come
Sometimes it seems that Kim and I bring nothing but bad news for the housing industry... However, we are eternal, not naive, optimists. When markets are down...then opportunity is up. When markets are up...then opportunity is up...now that's optimistic. We live in...
Big Bank Loan Mods Failing…More Short Sales – Deed In Lieu
Fannie Asking for $8.4 Billion More
2005 Bankruptcy Bar Raised…Struggling Homeowners Can't File To Save Homes?
In 2005 U.S. Bankruptcy was reformed...Bankruptcy bar raised and the amount of debt that could be discharged was reduced. Filing Fees for the Bankruptcy were also increased. This study is very compelling, not something I'd really given much thought to regarding...
FHA Puts Onus On Lenders…Fraud or Mistakes In Underwriting Will Cost Them!
By NICK TIMIRAOS The Federal Housing Administration, the government agency that insures a bigger and bigger portion of home loans, plans to rely more heavily on lenders to police mortgage brokers. The changes will put more of the onus on lenders to make sure there is...
Government "Go Green" =Fannie, Freddie NO Green
By Nick Timiraos Fannie Mae and Freddie Mac are giving the cold shoulder to a White House-backed effort to encourage Americans to make their homes more energy efficient. The initiative, called Property Assessed Clean Energy, or PACE, aims to eliminate the high upfront...
NO….Really….Bailouts Have Discouraged Banks From Lending…
John Tamny, 05.17.10, 06:00 AM EDT After a near-death experience, formerly insolvent banks are being overly cautious. According to Federal Reserve statistics, U.S. banks have reduced corporate lending in each of the last 12 months. A still uncertain economic outlook...