The 30-year fixed-rate mortgage increased an average of 1.2% since the beginning of the year, (from 3.22% to 4.42%), and just last week it leaped a quarter of a percent. Look at this chart to see how the movement of home-loan rates last year were not bad at all, compared to the rapid increase in rates this year:
I've read that many mortgage experts expect rates to continue to increase throughout the rest of this year. Let me know if you’d like me to send you some reading material.
What does this mean for you if you're looking to buy a home?
Well, because both home values and rates are going to increase for the rest of the year, if you’re able to buy, it would be better to do so sooner rather than later. That's because the longer you wait, the more it will cost you.
But there is some good news if you buy now. Yes, you will be paying more for a home now than you would have if you had bought last year, and you’ll be paying a higher mortgage rate than you would have last year, rising prices do have a long-term benefit once you buy.
If you purchase a home today valued at $800,000 and put 10% down, you would be taking out a $720,000 mortgage. That means at a 4.42% fixed mortgage rate, your mortgage payment would be $3,614 a month (this does not include insurance, taxes, and other fees because those vary by location). You can see a Mortgage Calculator on my website, HomesForSaleinIrvine.com
Now think about the huge growth in equity that you’ll see, due to rising home prices. Last week, Pulsenomics released their latest Home Price Expectation Survey.
The survey shows that the experts expect a 9% increase in home values in 2022.
So although paying a higher price for a home in Irvine, (or anywhere actually!), and paying a higher mortgage rate, can be difficult pills to swallow, waiting will just cost you more. If you're ready, willing, and able to buy a home, now will be a better time than a year, or even six months from now.
Let's connect to begin the process today. Call or text 949-537-2079 or send me a message!
