{"id":7523,"date":"2021-05-06T10:00:35","date_gmt":"2021-05-06T10:00:35","guid":{"rendered":"https:\/\/thezakariagroup.com\/why-waiting-to-buy-a-home-could-cost-you-a-small-fortune\/"},"modified":"2021-05-06T10:00:35","modified_gmt":"2021-05-06T10:00:35","slug":"why-waiting-to-buy-a-home-could-cost-you-a-small-fortune","status":"publish","type":"post","link":"https:\/\/thezakariagroup.com\/why-waiting-to-buy-a-home-could-cost-you-a-small-fortune\/","title":{"rendered":"Why Waiting to Buy a Home Could Cost You a Small Fortune"},"content":{"rendered":"
\n

\"Why<\/p>\n

Many people are sitting on the fence trying to decide if now’s the time to buy a home<\/a>. Some are renters who have a strong desire to become homeowners but are unsure if buying right now makes sense. Others may be homeowners who are realizing that their current home no longer fits their changing needs.<\/span><\/p>\n

To determine if they should buy now or wait another year, they both need to ask two simple questions:<\/p>\n

    \n
  1. Do I think home values will be higher a year from now?<\/li>\n
  2. Do I think mortgage rates will be higher a year from now?<\/li>\n<\/ol>\n

    Let’s shed some light on the answers to these questions.<\/p>\n

    Where will home prices be a year from now?<\/strong><\/h4>\n

    If you average the most recent projections<\/a> from the major industry forecasters, the expectation is home prices will increase by 7.7%. Let’s take a house that’s valued today at $325,000 as an example.<\/p>\n

    If the buyer makes a 10% down payment ($32,500), they’ll end up borrowing $292,500 for their mortgage. Applying the projected rate of home price appreciation, that same house will cost $350,025 next year. With a 10% down payment ($35,003), they’d then have to borrow $315,022.<\/p>\n

    Therefore, as a result of rising home prices alone, a prospective buyer will have to put down an additional $2,503 and borrow an additional $22,523 just for waiting a year to make their move.<\/p>\n

    Where will mortgage rates be a year from now?<\/strong><\/h4>\n

    Today, mortgage rates<\/a> are hovering around 3%. However, most experts believe they’ll rise<\/a> as the economy continues to recover. Any increase in the mortgage rate will also increase a purchaser’s cost. Here are the forecasts for the first quarter of 2022 from four major entities:<\/p>\n