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: 187 About Heather: I'm an agent whose business is built on the promise of exceptional customer service. If you are sel...
View our latest blog posts in your RSS reader. Click here to access.
Specialties: Buyer's Agent, Listing Agent, Relocation, Short-Sale
I'm an agent whose business is built on the promise of exceptional customer service. If you are selling your home or searching for that special place to call your own, you deserve to work with someone you trust-someone who you know has your best interests in mind. Whatever your particular Real Estate need, I'll work hard to make sure that you are completely satisfied. I have the knowledge, experience, and dedication that it takes to get results.
We hope 2018 is a great year for you, both personally and
"I have worked with Heather on several home purchases now, as well as rentals on another property. Heather is very knowledgable and quick to point out both the good and bad features of a property as well as potential upgrades or solutions to issues. I had a very specific set of requirements for this home. I'm a single dad on a budget, yet I was not going to shortchange my kids of a home with the space we needed to be comfortable and grow, both inside and out. We saw A LOT of properties trying to find the right blend of features, price and required upgrades. I wasn't foolish enough to think I would get everything I was looking for, for a good price, in move-in condition. I knew I would need to do some updating myself, but I also had to be able to move in and live there with the kids, so it couldn't be a total rehab project. Heather was great about responding to my many questions and emails and requests for property info at all hours of the day. She was also great setting up showings and working with my busy work schedule and having to bring my daughter along on almost all of our viewings. I would certainly recommend Heather for anyone's home buying or selling needs and I, myself would use her again. Though I do Intesn to stay put for quite some time now"