10/05/2021
🚨🚨If you’re a RENTER with a desire to become a homeowner, or a HOMEOWNER who’s decided your current house no longer fits your needs, you may be hoping that waiting a year might mean better market conditions to purchase a home.🚨🚨
To determine if you should buy now or wait, you need to ask yourself two simple questions:
1️⃣ What will home prices be like in 2022?
2️⃣ Where will mortgage rates be by the end of 2022?
Let’s shed some light on the answers to both of these questions.
🏠What will home prices be like in 2022?
Three major housing industry entities project continued home price appreciation for 2022. Here are their forecasts:
Freddie Mac: 5.3% 💰
Fannie Mae: 5.1% 💰
Mortgage Bankers Association: 8.4% 💰
Using the average of the three projections (6.27%), a home that sells for $350,000 today would be valued at $371,945 by the end of next year😳🤭. That means, if you delay, it could cost you more. As a prospective buyer, you could pay an additional $21,945 if you wait.
Where will mortgage rates be by the end of 2022? 🤔🧐
Today, the 30-year fixed mortgage rate is hovering near historic lows. However, most experts believe rates will rise as the economy continues to recover. Here are the forecasts for the fourth quarter of 2022 by the three major entities mentioned above:
Freddie Mac: 3.8%
Fannie Mae: 3.2%
Mortgage Bankers Association: 4.2%
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.
Let’s start this process now and save you almost $300 in mortgage payments every month!!
