A 3% mortgage rate feels safe, but rising prices could cost you more.
Many homeowners are holding on tightly to their current mortgage rates, especially those locked in at 3%. It’s understandable, but it raises an important question: What are the chances of still living in the same house five years from now? Even the possibility of moving should prompt a closer look at where the market is heading.
Home prices are projected to continue rising. This means that the longer you wait, the more expensive your next home is likely to be. For example, if you’re planning to buy a $400,000 home and decide to wait five years, current forecasts suggest that the same home could cost $80,000 more. In addition to rising purchase prices, there is also the cost of renting during that time if you sell without buying right away.
Instead of asking, “Why would I move?” it might be more helpful to ask, “When should I move?” Interest rates are not expected to drop significantly in the near future, while home prices are expected to climb. The timing of your decision can have a significant impact on what you pay and what you gain. If you have questions or need guidance, just reach out. You can call or text me at 803-886-0961 or send an email to brentd@thedowningteam.com. I look forward to hearing from you.
