[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"$f24jj7vg6pesrq":3,"$ffeh0925h8cuz":51,"$fbwk2pqjjqsc7":55},{"item":4,"previous":39,"next":45},{"id":5,"slug":6,"title":7,"description":8,"excerpt":9,"contentType":10,"featuredImage":11,"bannerImage":9,"body":12,"agentsBottomLine":13,"bodyImage":14,"isInfographic":15,"categories":16,"isVideo":15,"videoThumbnail":9,"videoSource":9,"publishedAt":37,"updatedAt":38},3756,"two-reasons-why-waiting-to-buy-a-home-will-cost-you","Two Reasons Why Waiting To Buy a Home Will Cost You","If you’re a homeowner who’s decided your current house no longer fits your needs, or a renter with a strong desire to become a homeowner, you may be hoping that waiting until next year could mean better market conditions to purchase a home.","","blog","https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2021\u002F12\u002F08132109\u002F20211209-KCM-Share.jpg","If you’re a homeowner who’s decided your current house no longer fits your needs, or a renter with a strong desire to become a homeowner, you may be hoping that waiting until next year could mean better market conditions to purchase a home.\u003C!--more-->\r\n\r\nTo determine whether you should buy now or wait another year, you can ask yourself two simple questions:\r\n\u003Col>\r\n \t\u003Cli>\u003Cstrong>Where will home prices be a year from now?\u003C\u002Fstrong>\u003C\u002Fli>\r\n \t\u003Cli>\u003Cstrong>Where will mortgage rates be a year from now?\u003C\u002Fstrong>\u003C\u002Fli>\r\n\u003C\u002Fol>\r\nLet’s shed some light on the answers to both of these questions.\r\n\u003Ch4>\u003Cstrong>Where Will Home Prices Be a Year from Now?\u003C\u002Fstrong>\u003C\u002Fh4>\r\nThree major housing industry entities are projecting ongoing home price appreciation in 2022. Here are their forecasts:\r\n\u003Cul>\r\n \t\u003Cli>\u003Ca href=\"https:\u002F\u002Fwww.fanniemae.com\u002Fresearch-and-insights\u002Fforecast\">\u003Cem>Fannie Mae\u003C\u002Fem>\u003C\u002Fa>: 7.4%\u003C\u002Fli>\r\n \t\u003Cli>\u003Ca href=\"http:\u002F\u002Fwww.freddiemac.com\u002Fresearch\u002Fforecast\u002F20211015_quarterly_economic_forecast.page?\">\u003Cem>Freddie Mac\u003C\u002Fem>\u003C\u002Fa>: 7%\u003C\u002Fli>\r\n \t\u003Cli>\u003Ca href=\"https:\u002F\u002Fwww.mba.org\u002Fnews-research-and-resources\u002Fresearch-and-economics\u002Fforecasts-and-commentary\">\u003Cem>Mortgage Bankers Association\u003C\u002Fem>\u003C\u002Fa>: 5.1%\u003C\u002Fli>\r\n\u003C\u002Ful>\r\nAccording to the \u003Cem>National Association of Realtors \u003C\u002Fem>(NAR), the median price of a home today is \u003Ca href=\"https:\u002F\u002Fwww.nar.realtor\u002Fresearch-and-statistics\">$353,900\u003C\u002Fa>. Using an average of the three price projections above (6.5%), a home that sold for $353,900 today would be valued at $376,904 at the end of next year. As a prospective buyer, you would therefore pay an additional $23,004 by waiting.\r\n\u003Ch4>\u003Cstrong>Where Will Mortgage Rates Be a Year from Now?\u003C\u002Fstrong>\u003C\u002Fh4>\r\nToday, \u003Cem>Freddie Mac\u003C\u002Fem> \u003Ca href=\"http:\u002F\u002Fwww.freddiemac.com\u002Fpmms\u002F\">announced\u003C\u002Fa> their 30-year fixed mortgage rate was at 3.1%. However, most experts believe mortgage rates will rise as the economy recovers. Here are the forecasts for the fourth quarter of 2022 by the three major entities mentioned above:\r\n\u003Cul>\r\n \t\u003Cli>\u003Ca href=\"https:\u002F\u002Fwww.fanniemae.com\u002Fresearch-and-insights\u002Fforecast\">\u003Cem>Fannie Mae\u003C\u002Fem>\u003C\u002Fa>: 3.4%\u003C\u002Fli>\r\n \t\u003Cli>\u003Ca href=\"http:\u002F\u002Fwww.freddiemac.com\u002Fresearch\u002Fforecast\u002F20211015_quarterly_economic_forecast.page?\">\u003Cem>Freddie Mac\u003C\u002Fem>\u003C\u002Fa>: 3.7%\u003C\u002Fli>\r\n \t\u003Cli>\u003Ca href=\"https:\u002F\u002Fwww.mba.org\u002Fnews-research-and-resources\u002Fresearch-and-economics\u002Fforecasts-and-commentary\">\u003Cem>Mortgage Bankers Association\u003C\u002Fem>\u003C\u002Fa>: 4%\u003C\u002Fli>\r\n\u003C\u002Ful>\r\nThat averages out to 3.7% if you include all three forecasts. Any increase in mortgage rates will increase your costs.\r\n\u003Ch4>\u003Cstrong>What Does It Mean for You if Home Values and Mortgage Rates Increase?\u003C\u002Fstrong>\u003C\u002Fh4>\r\nIf both variables increase, you’ll pay a lot more in mortgage payments each month. Let’s assume you purchase a $353,900 home today with a 30-year fixed-rate loan at 3.1% (the current rate from \u003Cem>Freddie Mac\u003C\u002Fem>) after making a 10% down payment. According to \u003Ca href=\"https:\u002F\u002Fwww.mortgagecalculator.net\u002F\">\u003Cem>mortgagecalculator.net\u003C\u002Fem>\u003C\u002Fa>, your monthly mortgage payment would be approximately $1,360 (this does not include insurance, taxes, and other fees because those vary by location).\r\n\r\nThat same home one year from now could cost $376,904, and the mortgage rate could be 3.7% (based on the industry forecasts mentioned above). Your monthly mortgage payment after putting down 10%, would be approximately $1,561.\u003Ca href=\"https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2021\u002F12\u002F09123547\u002F20211209-MEM-Eng-01.png\">\u003Cimg class=\"aligncenter wp-image-45647\" src=\"https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2021\u002F12\u002F09123547\u002F20211209-MEM-Eng-01.png\" alt=\"Two Reasons Why Waiting To Buy a Home Will Cost You | Simplifying The Market\" width=\"650\" height=\"488\" \u002F>\u003C\u002Fa>\u003Cstrong>The difference in your monthly mortgage payment would be $201. That’s $2,412 more per year and $72,360 over the life of the loan.\u003C\u002Fstrong>\r\n\r\nAdd to that the approximately $23,004 a house with a similar value would build in home equity this year due to home price appreciation, and the total net worth increase you could gain by buying this year is over $95,364 \u003Cem>(the $72,360 mortgage savings plus the $23,004 potential gain in equity if you buy now)\u003C\u002Fem>.\r\n\u003Ch3>\u003Cstrong>Bottom Line\u003C\u002Fstrong>\u003C\u002Fh3>\r\nWhen asking \u003Cem>if you should buy a home\u003C\u002Fem>, you may think of the \u003Ca href=\"https:\u002F\u002Fwww.simplifyingthemarket.com\u002F2021\u002F05\u002F03\u002Famericans-find-the-nonfinancial-benefits-of-homeownership-most-valuable\u002F\">non-financial benefits\u003C\u002Fa> of homeownership. When asking \u003Cem>when to buy\u003C\u002Fem>, the financial benefits make it clear that doing so now is much more advantageous than waiting until next year.","\r\nWhen asking \u003Cem>if you should buy a home\u003C\u002Fem>, you may think of the \u003Ca href=\"https:\u002F\u002Fwww.simplifyingthemarket.com\u002F2021\u002F05\u002F03\u002Famericans-find-the-nonfinancial-benefits-of-homeownership-most-valuable\u002F\">non-financial benefits\u003C\u002Fa> of homeownership. When asking \u003Cem>when to buy\u003C\u002Fem>, the financial benefits make it clear that doing so now is much more advantageous than waiting until next year.","https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2021\u002F12\u002F09123547\u002F20211209-MEM-Eng-01.png",false,[17,21,25,29,33],{"id":18,"name":19,"slug":20},5,"For Buyers","buyers",{"id":22,"name":23,"slug":24},9,"Home Prices","home-prices",{"id":26,"name":27,"slug":28},11,"First-Time Buyers","first-time-buyers",{"id":30,"name":31,"slug":32},35,"Mortgage Rates","mortgage-rates",{"id":34,"name":35,"slug":36},38,"Move-Up","move-up","2021-12-09T11:00:10Z","2022-11-16T16:58:19Z",{"id":40,"slug":41,"title":42,"featuredImage":43,"publishedAt":44,"contentType":10,"isVideo":15},3753,"struggling-to-find-a-home-to-buy-new-construction-may-be-an-option","Struggling To Find a Home To Buy? New Construction May Be an Option.","https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2021\u002F12\u002F03143844\u002F20211208-KCM-Share.jpg","2021-12-08T11:00:48Z",{"id":46,"slug":47,"title":48,"featuredImage":49,"publishedAt":50,"contentType":10,"isVideo":15},3757,"a-happy-tail-pets-and-the-homebuying-process-infographic","A Happy Tail: Pets and the Homebuying Process [INFOGRAPHIC]","https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2021\u002F12\u002F08135234\u002F20211210-KCM-Share.png","2021-12-10T11:00:01Z",{"cover":52,"open":53,"shareSpread":54},"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Buyers-Guide-Cover-original.png","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Buyers-Guide-Spread-original.png","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Buyers-Guide-Magazine-original.png",[56,60,61,65,69,73,74,75,79,80,81,85,89,93,97,101,105,109,113,117,121,125,129,133,137,141,145,149,153,157],{"id":57,"name":58,"slug":59},1,"Uncategorized","uncategorized",{"id":18,"name":19,"slug":20},{"id":62,"name":63,"slug":64},6,"For Sellers","sellers",{"id":66,"name":67,"slug":68},7,"Foreclosures","foreclosures",{"id":70,"name":71,"slug":72},8,"Infographics","infographics",{"id":22,"name":23,"slug":24},{"id":26,"name":27,"slug":28},{"id":76,"name":77,"slug":78},34,"Senior Market","senior-market",{"id":30,"name":31,"slug":32},{"id":34,"name":35,"slug":36},{"id":82,"name":83,"slug":84},41,"For Sale by Owner","for-sale-by-owner",{"id":86,"name":87,"slug":88},42,"Featured","featured",{"id":90,"name":91,"slug":92},45,"New Construction","new-construction",{"id":94,"name":95,"slug":96},52,"Luxury \u002F Vacation","luxury--vacation",{"id":98,"name":99,"slug":100},53,"Rent vs. Buy","rent-vs-buy",{"id":102,"name":103,"slug":104},80,"Time-sensitive","time-sensitive",{"id":106,"name":107,"slug":108},81,"Outdated","outdated",{"id":110,"name":111,"slug":112},147,"Internal","internal",{"id":114,"name":115,"slug":116},148,"Do Not Autopost","do-not-autopost",{"id":118,"name":119,"slug":120},320,"Inventory","inventory",{"id":122,"name":123,"slug":124},321,"Agent Value","agent-value",{"id":126,"name":127,"slug":128},322,"Affordability","affordability",{"id":130,"name":131,"slug":132},323,"Buying Tips","buying-tips",{"id":134,"name":135,"slug":136},324,"Downsize","downsize",{"id":138,"name":139,"slug":140},325,"Economy","economy",{"id":142,"name":143,"slug":144},326,"Equity","equity",{"id":146,"name":147,"slug":148},327,"Forecasts","forecasts",{"id":150,"name":151,"slug":152},328,"Selling Tips","selling-tips",{"id":154,"name":155,"slug":156},339,"Expired\u002FWithdrawn\u002FCanceled","expiredwithdrawncanceled",{"id":158,"name":159,"slug":160},340,"Price It Right\u002FOverpricing","price-it-rightoverpricing"]