The impact of waiting a year to purchase metro Boston real estate is significant with regard to your monthly payment. The following chart shows how mortgage affordability is affected at various purchase price points.
*Principal and interest assuming 30-year mortgage rates go from 3.7% to 4.7% (as projected by Freddie Mac) and home prices appreciate 4.4% (as projected by the Home Price Expectation Survey). Price increase is added to the mortgage amount.
- The longer you wait to buy, the less house you'll probably be able to afford
- Now is the time to get into the marketwith mortgage affordability projected to wane, fewer buyers will be in the market for your property and if you plan on buying on the other side, please refer to the bullet point above
Some Important Mortgage Affordability Points To Consider:
- The latest Freddie Mac Primary Mortgage Market Survey reports the 30-year fixed rate at 3.7%
- Freddie Mac's projection for Q2 2016 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% nationally during this same time (last year in Boston that number was 7.1%)
Many thanks to our friends at KCM Blog for inspiring this post!