Are you thinking should I wait till 2022 to purchase a house? I have been getting that question from my clients, buyers, from friends and they want to know if should they wait till 2022. So that’s why I made this video today. I’ve got some facts and did some research for you guys on two reasons why waiting till 2022 will actually cost you money. If you’re a renter or you’re thinking about becoming a homeowner for the first time, or your home that you’re currently live in just doesn’t fit your needs anymore you need more space. If you’re hoping if we just wait a little bit longer, maybe prices will come down.
There are two questions that we need to ask. You need ask yourself what will home prices be in 2022 and what will mortgage rates be in 2022? To help shed the light on the answers questions the three major housing industries that project home prices appreciation in 2022. Here are their forecasts for 2022. We’ve got Freddie Mac appreciation of 5.3% Fannie Mae 5.1% appreciation and Mortgage Bankers Association 8.4% appreciation. All three are saying house prices are still going to keep appreciating using the average of these three projections it’s a 6.27%. Homes that appreciate and sells today that are valued around $350,000 will be valued next year at $371,000 average by the end of next year. That means if you delay buying your home till 2022, you could pay an additional $21,000 on that house, crazy I know by waiting.
Where will market rates be in 2022? Well today 30-year mortgage rates fixed are hovering at historic low rates which is great however experts believe that with the economy recovering and doing better that it will continue to tick up. So the forecast for the fourth quarter in 2022 by three major entities. They believe interest rates will be going up. Freddie Mac believes it will go up at 3.8%, Fannie Mae thinks 3.2% and Mortgage Bankers Association thinks 4.2% could be interest rates in 2022. So all think that there’s gonna be a tick up in interest rates so average, that averages out to 3.7% percent with the three together. That really could end up costing you more money in 2022.
What does that mean for you ? If you were to purchase a home in 2021 purchase amount $350,000 and average mortgage mortgage rate you got 2.86% your monthly payment is $1,899 a month, this is in 2021. If you wait till 2022, that same house will be $371,000 average mortgage rate interest rate will be 3.7% it’s gone up and your monthly payment will be $2,166. That’s an average of $267 increase a month and it’s about $3,000 dollars a year that you’ll have to pay more because you waited a year. T
hat’s just some research I did on what it’ll cost you by waiting until 2022. Fall time, winter as we’re going into fall winter it’s a great time to make purchases! Please keep me in mind, I’m Amy Pearson realtor with @properties.