Why Waiting a Year to Purchase a Home Could Cost You

Why Waiting a Year to Purchase a Home Could Cost You!

What will home prices be like in 2022?
Let’s shed some light on the answers to both of these questions. If you want a better understanding for whether or not buying now is worth it, assess how much money people are spending nowadays and what their thoughts may have been back then about where property values would eventually go up (or down). What's another thing that might help determine if this move makes sense - mortgage rates by end-of year 2021 vs financial projections considering today’s market conditions; do they look anything like each other at all!? You should take into account as well any changes within your own personal situation since there.

What will home prices be like in 2022?

Home prices are projected to continue their upwards trajectory in 2022. Here's how the three major housing industry entities see it: 

Freddie Mac projects that a home valued at $350,000 today would be worth an additional 5%. Fannie Mae estimates an increase of 4% for this year and next; Mortgage Bankers Association sees 8%. Using average (6%) as our guess-timate price range, waiting tightens your wallet by 21 thousand dollars more than if you buy now - so consider those factors before making any big decisions!

Where will mortgage rates be by the end of 2022?

The 30-year fixed mortgage rate is hovering near historic lows. Most experts believe rates will rise as the economy continues to recover, but not by much and it's difficult for anyone predict with certainty what economic trends might look like going forward in this ever changing world we live in today!

That averages out to 3.7% if you include all three forecasts, and it’s nearly a full percentage point higher than today’s rates. Any increase in mortgage rates will increase your cost.

How Does it Affect You As a Buyer, if Both Mortgage Rates & Home Values Rise?

Imagine you’re buying a home this year and your down payment is 10%. You need to make sure that even with both variables increasing, mortgage payments won't go up as much because of how large they were in past years. For example: if we assume the price on $350k homes has increased by 20% since last year ($450K), then at 2.86 percent interest rate now compared to 3%, it would still only require monthly adjustments around $30 less than before!

That same home could cost $371,945 by the end of 2022, and the mortgage rate could be 3.7% (based on the industry forecasts mentioned above). Your monthly mortgage payment, after putting down 10%, would increase to $2,166

The difference in your monthly mortgage payment would be $267. That’s a whopping amount, and it could add up to over 3 years of additional income for you!

The best time to buy is now before prices go back down again - with this purchase alone we're talking about gaining an extra 88 thousand dollars worth of equity on your house? It doesn't even matter if interest rates rise as well because those savings will more than make up for any increased costs from higher borrowing fees (and I'm sure they'll keep going UP!). So why wait? Buy today while there are still some great deals out there!

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