ONE MORE TIME, NOW IS THE TIME TO MAKE THAT FIRST HOME PURCHASE OR TO MOVE UP TO YOUR DREAM HOUSE.
Information below summarizes what the industry leaders think will happen to mortgage interest rates over the next year. They will be going up. About 4% today up to about 4.6% a year from now.
Adding to this is the fact that most of Chester, Delaware and Montgomery counties are are seller’s markets where buyers outnumber sellers and there is upward pressure on prices.
At today’s rates a buyer can get into that first house (priced at $250,000) for a monthly principal and interest payment of $1152. Wait a year when interest rates are up and the house price is up by about 5% and the monthly P&I payment is up to $1,286, ($134 more or $1,608 a year).
All the indicators say to make that move now.
With interest rates still below 4%, many buyers may be on the fence as to whether to act now and purchase a new home, or wait until next year.
If you look at what the four major reporting agencies are predicting for 2016, it may make the decision for you. The chart below averages the predictions by quarter.
With the exception of Fannie Mae, the experts agree that interest rates will increase by three-quarters of a percentage point, costing you more to pay back your loan.
Even a small increase in interest rates can put a dent in your family’s wealth.
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