{"id":7650,"date":"2021-12-09T11:00:10","date_gmt":"2021-12-09T11:00:10","guid":{"rendered":"https:\/\/thezakariagroup.com\/two-reasons-why-waiting-to-buy-a-home-will-cost-you\/"},"modified":"2021-12-09T11:00:10","modified_gmt":"2021-12-09T11:00:10","slug":"two-reasons-why-waiting-to-buy-a-home-will-cost-you","status":"publish","type":"post","link":"https:\/\/thezakariagroup.com\/two-reasons-why-waiting-to-buy-a-home-will-cost-you\/","title":{"rendered":"Two Reasons Why Waiting To Buy a Home Will Cost You"},"content":{"rendered":"<div>\n<p><img decoding=\"async\" width=\"358\" src=\"https:\/\/files.simplifyingthemarket.com\/wp-content\/uploads\/2021\/12\/08132109\/20211209-KCM-Share-549x300.jpg\" class=\"webfeedsFeaturedVisual wp-post-image\" alt=\"Two Reasons Why Waiting To Buy a Home Will Cost You | Simplifying The Market\" loading=\"lazy\" style=\"display: block; margin-bottom: 5px; clear:both;max-width: 100%;\" link_thumbnail=\"\" srcset=\"https:\/\/files.simplifyingthemarket.com\/wp-content\/uploads\/2021\/12\/08132109\/20211209-KCM-Share-549x300.jpg 549w, https:\/\/files.simplifyingthemarket.com\/wp-content\/uploads\/2021\/12\/08132109\/20211209-KCM-Share.jpg 750w\" sizes=\"(max-width: 549px) 100vw, 549px\"><\/p>\n<p>If you\u2019re a homeowner who\u2019s decided your current house no longer fits your needs, or a renter with a strong desire to become a homeowner, you may be hoping that waiting until next year could mean better market conditions to purchase a home.<span id=\"more-45625\"><\/span><\/p>\n<p>To determine whether you should buy now or wait another year, you can ask yourself two simple questions:<\/p>\n<ol>\n<li><strong>Where will home prices be a year from now?<\/strong><\/li>\n<li><strong>Where will mortgage rates be a year from now?<\/strong><\/li>\n<\/ol>\n<p>Let\u2019s shed some light on the answers to both of these questions.<\/p>\n<h4><strong>Where Will Home Prices Be a Year from Now?<\/strong><\/h4>\n<p>Three major housing industry entities are projecting ongoing home price appreciation in 2022. Here are their forecasts:<\/p>\n<ul>\n<li><a href=\"https:\/\/www.fanniemae.com\/research-and-insights\/forecast\"><em>Fannie Mae<\/em><\/a>: 7.4%<\/li>\n<li><a href=\"http:\/\/www.freddiemac.com\/research\/forecast\/20211015_quarterly_economic_forecast.page?\"><em>Freddie Mac<\/em><\/a>: 7%<\/li>\n<li><a href=\"https:\/\/www.mba.org\/news-research-and-resources\/research-and-economics\/forecasts-and-commentary\"><em>Mortgage Bankers Association<\/em><\/a>: 5.1%<\/li>\n<\/ul>\n<p>According to the <em>National Association of Realtors <\/em>(NAR), the median price of a home today is <a href=\"https:\/\/www.nar.realtor\/research-and-statistics\">$353,900<\/a>. Using an average of the three price projections above (6.5%), a home that sold for $353,900 today would be valued at $376,904 at the end of next year. As a prospective buyer, you would therefore pay an additional $23,004 by waiting.<\/p>\n<h4><strong>Where Will Mortgage Rates Be a Year from Now?<\/strong><\/h4>\n<p>Today, <em>Freddie Mac<\/em> <a href=\"http:\/\/www.freddiemac.com\/pmms\/\">announced<\/a> their 30-year fixed mortgage rate was at 3.1%. However, most experts believe mortgage rates will rise as the economy recovers. Here are the forecasts for the fourth quarter of 2022 by the three major entities mentioned above:<\/p>\n<ul>\n<li><a href=\"https:\/\/www.fanniemae.com\/research-and-insights\/forecast\"><em>Fannie Mae<\/em><\/a>: 3.4%<\/li>\n<li><a href=\"http:\/\/www.freddiemac.com\/research\/forecast\/20211015_quarterly_economic_forecast.page?\"><em>Freddie Mac<\/em><\/a>: 3.7%<\/li>\n<li><a href=\"https:\/\/www.mba.org\/news-research-and-resources\/research-and-economics\/forecasts-and-commentary\"><em>Mortgage Bankers Association<\/em><\/a>: 4%<\/li>\n<\/ul>\n<p>That averages out to 3.7% if you include all three forecasts. Any increase in mortgage rates will increase your costs.<\/p>\n<h4><strong>What Does It Mean for You if Home Values and Mortgage Rates Increase?<\/strong><\/h4>\n<p>If both variables increase, you\u2019ll pay a lot more in mortgage payments each month. Let\u2019s assume you purchase a $353,900 home today with a 30-year fixed-rate loan at 3.1% (the current rate from <em>Freddie Mac<\/em>) after making a 10% down payment. According to <a href=\"https:\/\/www.mortgagecalculator.net\/\"><em>mortgagecalculator.net<\/em><\/a>, your monthly mortgage payment would be approximately $1,360 (this does not include insurance, taxes, and other fees because those vary by location).<\/p>\n<p>That same home one year from now could cost $376,904, and the mortgage rate could be 3.7% (based on the industry forecasts mentioned above). Your monthly mortgage payment after putting down 10%, would be approximately $1,561.<a href=\"https:\/\/files.simplifyingthemarket.com\/wp-content\/uploads\/2021\/12\/09123547\/20211209-MEM-Eng-01.png\"><img loading=\"lazy\" decoding=\"async\" loading=\"lazy\" class=\"aligncenter wp-image-45647\" src=\"https:\/\/files.simplifyingthemarket.com\/wp-content\/uploads\/2021\/12\/09123547\/20211209-MEM-Eng-01.png\" alt=\"Two Reasons Why Waiting To Buy a Home Will Cost You | Simplifying The Market\" width=\"650\" height=\"488\" srcset=\"https:\/\/files.simplifyingthemarket.com\/wp-content\/uploads\/2021\/12\/09123547\/20211209-MEM-Eng-01.png 1000w, https:\/\/files.simplifyingthemarket.com\/wp-content\/uploads\/2021\/12\/09123547\/20211209-MEM-Eng-01-400x300.png 400w\" sizes=\"(max-width: 650px) 100vw, 650px\"><\/a><strong>The difference in your monthly mortgage payment would be $201. That\u2019s $2,412 more per year and $72,360 over the life of the loan.<\/strong><\/p>\n<p>Add to that the approximately $23,004 a house with a similar value would build in home equity this year due to home price appreciation, and the total net worth increase you could gain by buying this year is over $95,364 <em>(the $72,360 mortgage savings plus the $23,004 potential gain in equity if you buy now)<\/em>.<\/p>\n<h3><strong>Bottom Line<\/strong><\/h3>\n<p>When asking <em>if you should buy a home<\/em>, you may think of the <a href=\"https:\/\/www.simplifyingthemarket.com\/2021\/05\/03\/americans-find-the-nonfinancial-benefits-of-homeownership-most-valuable\/\">non-financial benefits<\/a> of homeownership. When asking <em>when to buy<\/em>, the financial benefits make it clear that doing so now is much more advantageous than waiting until next year.<\/p>\n<\/div>\n<p class=\"wpematico_credit\"><small>Powered by <a href=\"http:\/\/www.wpematico.com\" target=\"_blank\" rel=\"noopener\">WPeMatico<\/a><\/small><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you\u2019re a homeowner who\u2019s decided your current house no longer fits your needs, or a renter with a strong desire to become a homeowner, you may be hoping that waiting until next year could mean better market conditions to purchase a home. To determine whether you should buy now or wait another year, you [&hellip;]<\/p>\n","protected":false},"author":101010,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[110,98,99,104,101,108],"tags":[],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Two Reasons Why Waiting To Buy a Home Will Cost You - The Zakaria Group<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/thezakariagroup.com\/two-reasons-why-waiting-to-buy-a-home-will-cost-you\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Two Reasons Why Waiting To Buy a Home Will Cost You - The Zakaria Group\" \/>\n<meta property=\"og:description\" content=\"If you\u2019re a homeowner who\u2019s decided your current house no longer fits your needs, or a renter with a strong desire to become a homeowner, you may be hoping that waiting until next year could mean better market conditions to purchase a home. 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