The interest rate you pay on your home mortgage has a direct impact on your monthly payment.
The higher the interest rate, the greater the mortgage payment will be. That is why it is important to know where rates are headed when deciding to start your home search.
Below is a chart created using Freddie Mac’s U.S. Economic & Housing Marketing Outlook. As you can see, interest rates are projected to increase steadily over the course of the next 12 months.
How Will This Impact Your Mortgage Payment?
Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly.
According to CoreLogic’s latest Home Price Index, national home prices have appreciated 7.0% from this time last year and are predicted to be 5.2% higher next year.
5-Year Change in Price by Price Range
If both the predictions of home price and interest rate increases become reality, families would wind up paying considerably more for their next home.
Even a small increase in interest rate can impact your family’s wealth.
Contact a Help-U-Sell Real Estate Agent to evaluate your ability to purchase your dream home in West Hills, Woodland Hills, or any other Los Angeles, San Fernando Valley and Santa Clarita area real estate.
The Cost of Waiting: Interest Rates Edition
The Cost of Waiting to Buy is defined as the additional funds it would take to buy a home if prices & interest rates were to increase over a period of time.
Recently there has been a lot of talk about home prices and if they are accelerating too quickly.
In some areas of the country, seller supply (homes for sale) cannot keep up with the number of buyers out looking for a home, which has caused prices to rise.
The great news about rising prices, however, is that according to CoreLogic’s latest US Economic Outlook, the average American household gained over $15,000 in equity over the course of the last year, largely due to home value increases.
For many Americans, buying their first home is their first taste of achieving part of the American Dream. There is a sense of pride that comes along with owning your own home and building your family’s wealth through your monthly mortgage payment.
It may seem hard to imagine that the first home you purchased (which made your dreams come true) might not be the home that will allow you to achieve the rest of your dreams. The good news is that it’s ok to admit that your home no longer fits your needs!
675,000 Homeowners Regained Equity in 2017. CoreLogic’s latest Equity Report revealed that “over the past 12 months, 675,000 borrowers moved into positive equity.“
This is great news, as the share of homeowners with negative equity (those who owe more than their home is worth), has dropped more than 20% since the peak in Q4 of 2009 (26%) to 4.9% today
There are many unsubstantiated theories as to why home values are continuing to increase.
From those who are worried that lending standards are again becoming too lenient (data shows this is untrue), to those who are concerned that prices are again approaching boom peaks because of “irrational exuberance” (this is also untrue as prices are not at peak levels when they are adjusted for inflation), there seems to be no shortage of opinion.
Search Homes For Sale in West Hills and Woodland Hills area
We also have a complete Multiple Listing Service (MLS) of residential houses for sale in Lake Balboa, Arleta, Northridge, Mission Hills, North Hills, North Hollywood, Panorama City, San Fernando, Sun Valley, Sylmar, Van Nuys, Castaic, Valencia, Canyon Country, Newhall, Stevenson Ranch, Santa Clarita, or any other Los Angeles, San Fernando Valley or Santa Clarita Valley Real Estate.
Homes Sold in the West Hills and Woodland Hills area in the last 90 days
You’re paying how much to sell your home?
With the Help-U-Sell Real Estate company concept, you could save thousands of dollars when you sell your home.
Want to know more? Call us at 818-997-1000, or complete the form below to request more information.