Thinking of waiting another year or two to buy a home? If home prices and mortgage rates increase in the next year or two, home buyers in Utah could end up with significantly less buying power than they have today.
Today’s mortgage rates are near historic lows. But they aren’t expected to stay that way. Various housing groups and economists are predicting mortgage rates will rise to between 4.5% and 5% by the end of the year.
The National Association of Realtors also is expecting home prices to increase in 2018 by an average of 3.2 percent nationally, with the highest appreciation predicted in the lower price ranges, which are in high demand. The combination of higher home prices andhigher mortgage rates could make for a mortgage payment that’s significantly higher than it would be if the home were purchased now.
There are, of course, many other factors that come into play in the decision to buy a home, such as how long you plan to stay in your home, the stability of your job and how much money you’ve saved up for a down payment. If you’re thinking about purchasing a home, visit us and we’ll help you crunch some numbers.