It is the first time that two colors have been selected. In laymans terms – baby blue and pastel pink. Don’t know that I am crazy about either one of these becoming the decorating rage.
It seems so 1990’s…
The monthly mortgage payment on a home is determined by two elements: the price of the house and the interest rate you pay on your mortgage. Recently released reports are revealing that the experts expect both elements to increase in 2016.
CoreLogic has projected a nationwide 5.2% home value appreciation for the next twelve months. Here is their breakdown by state:
All four of the entities that provide projections on mortgage interest rates agree: they’re going up in 2016. Here are the predictions over the next four quarters:
With both home values and interest rates projected to increase over the next twelve months, buying (or moving-up), sooner rather than later, makes sense.
…that mortgage interest rates are at risk of rising as much as 1% over the course of the next year. Thinking of moving? Act sooner than later!
Last week, an article in the Washington Post discussed a new ‘threat’ homebuyers will soon be facing: higher mortgage rates. The article revealed:
“The Mortgage Bankers Association expects that rates on 30-year loans could reach 4.8 percent by the end of next year, topping 5 percent in 2017. Rates haven’t been that high since the recession.”
The article reported that recent analysis from Realtor.com found that –
“…as many as 7% of people who applied for a mortgage during the first half of the year would have had trouble qualifying if rates rose by half a percentage point.”
This doesn’t necessarily mean that those buyers negatively impacted by a rate increase would not purchase a home. However, it would mean that they would either need to come up with substantially more cash for a down payment or settle for a lesser priced home.
Below is a table showing how a jump in mortgage interest rates would impact the purchasing power of a prospective buyer on a $300,000 home.
If you are considering a home purchase (either as a first time buyer or move-up buyer), purchasing sooner rather than later may make more sense from a pure financial outlook.