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?
“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:Heather F Davidson Phone: 609-209-7581 Dated: May 17th 2018 Views: 185 About Heather: I'm an agent whose business is built on the promise of exceptional customer service. If you are sel...
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