Over the course of the last 12 months, home prices have appreciated by 7.0%. In that same amount of time, interest rates have remained low allowing many buyers to enter the market.

As a Seller, you may be concerned about ‘short-term price’ – where home values are headed over the next six months. As a Buyer, however, your attention may be more focused on the ‘long-term cost’ of the home.

The Mortgage Bankers Association (MBA), Freddie Mac, and Fannie Mae all project that mortgage interest rates will increase in 2018. According to CoreLogic’s most recent Home Price Index Report, home prices will appreciate by 4.7% over the next 12 months.

What Does This Mean as a Buyer?
If home prices appreciate by 4.7% over the next twelve months, here is a simple chart of the impact an increase in interest rate would have on the mortgage payment of a home selling for approximately $250,000 today:

Bottom Line
If buying a home is in your plan for 2018, doing it sooner rather than later could significantly save you thousands over the terms of your loan.