You can read the full report online by clicking the image below.
Below is a chart created using Freddie Mac’s U.S. Economic & Housing Marketing Outlook. As you can see, interest rates are projected to increase steadily over the course of the next 12 months.
How Will This Impact Your Mortgage Payment?
Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly.
According to CoreLogic’s latest Home Price Index, national home prices have appreciated 7.0% from this time last year and are predicted to be 4.2% higher next year.
If both the predictions of home price and interest rate increases become reality, families would wind up paying considerably more for their next home.
Even a small increase in interest rate can impact your family’s wealth. Let’s get together to evaluate your ability to purchase your dream home.
The lack of available homes for sale on the Eastside remains critical. Inventory, which traditionally increases in the spring, continued to shrink. As demand far outstripped supply, home prices on the Eastside overall increased by double-digits over the last year!
The Eastside Market 2nd Quarter statistics are in and they're pretty amazing!
- 55% of houses listed sold ABOVE asking price in under 7 days!
- 20% sold at the listing price in just under 17 days
- Only 25% sold at under asking price
- The median price is up 6% to $640,000. This is the highest region in King County!
- The Eastside market ranges from only .7 months of supply to 1.7 months of supply.
What does this mean to you? It's a SELLER'S MARKET. If you are contemplating selling your home in the next year, NOW would be a perfect time to do so. Families with children are looking to move now since school let out and they want to settle in their new school districts or neighborhoods before the school year starts.
Here's a market update for June activity – records set. The trend we've been seeing continues – extremely low inventory and increasing prices. What's that mean? Sell now! It's an extremely strong seller's market. Does that mean wait to buy? Absolutely not. Prices keep going up, and with interest at such lows (and a potential rise in the near future), your buying power is stronger now than it will likely be in the future…
Now is the time to do it. Mortgages are typically lower than rent for the same property – in the Seattle Metro area, an average home purchase is 38% cheaper than the rent would be on the same property. You'll also be building equity for yourself rather than building your landlord's equity!