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.
But MORE IMPORTANTLY how does this impact your life and budget really? See the example below.
If interest rates rise to 4.8% by the end of next year and home prices are expected to appreciate by 5.3% over the next 12 months, this is what you would see relative to an example of a home priced at $250,000 today.
See what a difference a year truly can make in saving you significant money monthly, annually and over 30 years!
Bottom Line: If you are ready and willing to buy your dream home, find out if you are able to now! I am happy to help you in your search and would love to find out what you are looking for in the Chicago market!
Give me a shout at firstname.lastname@example.org today!