So there is plenty of home buying advice I could give you, and if you read my articles regularly you know they span quite a bit of information. Â But right now, the most important information I can give you is to buy your Knoxville or Farragut home soon. Â You might be asking, Troy, what’s the big rush? Â Well, if you are thinking about buying in the next couple of months that is fine, but if you are thinking about waiting until next year, it could cost you quite a bit of money. Why is that? Â Home prices and mortgage interest rates.
Here is what the experts say we should expect:
- Freddie Mac’s latest Primary Mortgage Market Survey reports the 30-year fixed rate at 3.7%.  That’s a great rate!
- Freddie Mac’s projection for a year from now is that the rate will be 4.7% (a full percentage point higher).
- The Home Price Expectation Survey predicts that home prices will appreciate by 4.4% during this same time.
Let’s take a look at how these two factors would effect your monthly mortgage payment if you decided to wait until next year to buy a home in Farragut or Knoxville, or anywhere for that matter.
What does this mean for you?
If the experts projections are correct, it’s plain to see in the chart above that to purchase the same house one year from now would cost you significantly more per month. Â If you don’t want or can’t afford to pay more per month, then you have only one choice… buy less house. Â The increase in home prices and mortgage rates puts a big dent in your buying power. Â To summarize, buy now and get more house for less money. Â Wait a year, get less house for the same money or the same house for more money. Â Can you see why this is so important!? If you have any questions or if you would like to sit down and discuss getting your home search started, contact me, Troy Stavros with Gables & Gates, REALTORS at 865-999-0925 or email me HERE to schedule a time that is convenient for you. Â I look forward to hearing from you. Â I’m here to serve you!
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