Buying a home is a big decision, one that requires plenty of thought and deliberation. While it’s important to take your time and feel confident in your choice, you might want speed up the process.
Why? Well, within the next year, buying is about to become significantly more expensive. Take a look at the breakdown of the numbers, and get started with your search soon!
Costs Are Rising
Right now, mortgage interest rates are lower than they’ve been in years—even lower than experts had predicted. Over the next year, though, they’re only expected to rise.
Not only are interest rates ticking up, home prices themselves are growing as well. Add those two factors together, and you’re also looking at increased mortgage payments.
Let’s put those numbers in perspective. According to Freddie Mac projections, current interest rates are around 4.3%. Next year, they’ll reach 4.5%. While that might not seem like a big jump, when you’re talking about big ticket purchases—like homes, for example—.2% can mean a major difference in cost.
As far as home prices go, CoreLogic estimates around a 4.8% jump. Again, not huge at first glance, but when you start looking at the numbers—like, for example, $250,000 versus $262,000—that’s a difference of over $10,000!
Put interest rates and home values together, and you’ll find that mortgage payments are following suit. Considering the current numbers, your average mortgage payment would be $1,231.60. Next year, that number looks more like $1,321.04.
How Much Will Waiting Cost You?
Bottom line? Waiting to buy may not seem like a big deal at first, but those increased costs will add up quickly—especially in a competitive market like Raleigh’s.
Say you buy that home you’ve had your eye on, but you don’t do it until next year. You can expect to pay an extra $89.44 monthly—around the same cost as your daily coffee or weekly sushi. Per year, you’re looking at $1,073.28—around the same cost as a cushy weekend getaway or the balance on those credit card statements.
Within 30 years? You’ll be paying an extra $32, 198—and when it comes to other ways we’d rather use that money, we can think of about a thousand.
Don’t Wait to Buy Your New Home
If you’re on the fence about buying, just know: waiting until next year is going to cost you big. About $32,000 big. Don’t put off buying your Raleigh home—let Linda Craft & Team REALTORS® help you get started today.