Mortgage interest rates have risen by more than half of a point since the beginning of the year, and many assume that if mortgage rates rise, home values will fall. History, however, has shown thisnot to be true.
Where are home values today compared to the beginning of the year?
While rates have been rising, so have home values. Here are the most recent monthly price increases reported in theHome Price Insights ReportfromCoreLogic:
January: Prices were up 0.5% over the month before.
February: Prices were up 1% over the month before.
March: Prices were up 1.4% over the month before.
Not only did prices continue to appreciate, the level of appreciation accelerated over the first quarter.CoreLogicbelieves that home prices will increase by 5.2% over the next twelve months.
How can prices rise while mortgage rates increase?
Freddie Macexplained in a recentInsight Report:
“In the current housing market, the driving force behind the increase in prices is a low supply of both new and existing homes combined with historically low rates. As mortgage rates increase, the demand for home purchases will likely remain strong relative to the constrained supply and continue to put upward pressure on home prices.”
If you are thinking about moving up to your dream home, waiting until later this year and hoping for prices to fall may not be a good strategy.
Author:Raymond Edler Phone: 214-552-2091 Dated: May 17th 2018 Views: 249 About Raymond: ...
Keller Williams Preston Road is the #1 Producing office in DFW. Whether you are looking to buy, sell or invest in commercial or residential real estate, you'll want the experience you can trust to give you the service you deserve. Texas Real Estate Commission Consumer Protection Notice
Moving Up To Your Dream Home? Don’t Wait!Mortgage interest rates hav
"Raymond is the best realtor I have ever had the pleasure of working with. His expertise and knowledge helped us sell our current home in one weekend and find our perfect new dream home. Raymond is professional, compassionate and patient. Thanks for everything!!!"