With our lifestyles always evolving, we must constantly adapt to our changing needs which will ultimately affect your desire to move. The decision to move into a new home can be complicated with having to take personal and professional considerations into account. If you are thinking about moving you might be questioning if it would be better to move now or wait until next year. You have the opportunity to answer these questions by evaluating the financial aspect of the potential purchase.
Nobody can guarantee what home values or mortgage rates will be in the future but experts are predicting what these rates will be by the end of the year. Experts believe that both home values and mortgage rates will be higher a year from now. Both of these factors will affect your possible decision to move.
Mark Fleming, Chief Economist at First American reports, “Rising interest rates reduce house-buying power and affordability, but are often a sign of a strong economy, which increases home buyer demand.”
Deputy Director of the Federal Housing Finance Agency (FHFA) has also stated that, “House prices nationwide recorded the largest annual and quarterly increase in the history of the FHFA Home Price Index.” The past year was truly a remarkable time for homeowners as prices appreciated substantially.
If you wait until next year to purchase a home, you might be risking a larger financial burden. The cost of waiting to purchase a home in a year could increase the overall price of the home. Also, the financial impact of waiting could potentially mean a larger down payment and extra mortgage payment amounts.
There are many factors to consider while deciding to make a decision to purchase a home. When examining just the financial aspect, buying now makes more sense than waiting to purchase a home next year. With experts believing that mortgage rates and home values will increase as we move forward, it is important to get into contact with a trusted advisor. Seven Gables would love to help make your transition easier, connect with us today to learn more!