Buying a home in Knoxville? Price vs. Cost. What’s the Difference?

When selling a home in Knoxville, you will be most concerned about ‘short term price’ – where are home values headed over the next six months. When buying a home in Knoxville, you must be concerned less about price but instead about the ‘long term cost’ of the home.

The Mortgage Bankers Association (MBA), the National Association of Realtors, Fannie Mae and Freddie Mac all projected that mortgage interest rates will increase by about three-quarters of a percentage point over the next twelve months.

According to CoreLogic’s most recent Home Price Index Report, home prices will appreciate by 5.2% over the next 12 months.

What Does This Mean as a Buyer?

Here is a simple demonstration of what impact an interest rate increase would have on the mortgage payment of a home selling for approximately $250,000 today if home prices appreciate by the 5.2% predicted by CoreLogic over the next twelve months:

Call me, Troy Stavros with Gables & Gates, REALTORS today to get your home search process started!