This is a great graphic that shows the impact of rising prices (appreciation) and increasing interest rates. When you look at the information and see a 10% increase in purchase price and a 1% increase in interest rate you see that your purchasing power has decreased significantly. Your monthly payment have increased 24% over where it would have been just one year ago!!! How much longer can you afford to wait? If you’re tired of renting and want to buy a home contact me and we can schedule an appointment to meet and go over all of your options and see if home ownership makes sense for you!
We often talk about the potential cost of waiting to buy a home. Today, we want to look at the actual cost for someone who waited over the last year. We used a 10% increase in house values as prices have gone up by double digits in the country on average. We looked at approximate mortgage rates last year compared to this year. Here is the impact on a monthly mortgage payment (principal and interest):