For those who are considering purchasing a home, you need to know that mortgage payments are growing.  Interest rates for 2019 are predicted to rise consistently.  I read this article in The MReport citing a study of this.

Mortgage Payments Outpace Home Prices

Mortgage payments are up year over year, outpacing home prices.  This is according to the latest CoreLogic Home Price Index Forecast.  According to the study, principal-and-interest mortgage payments have increased more than 15 percent over the past year.  The the U.S. median sale price has risen by just over 6 percent in that same time.

Additionally, CoreLogic predicts home prices to U.S. home prices will be up 4.7 percent year-over-year in June 2019, and the U.S. median sale price in June 2018 – $233,732 – was up 6.3 year over year, while typical mortgage payments rose 15.1 percent because of a .67-percentage-point rise in mortgage rates over that one-year period.

According to the latest Primary Mortgage Market Survey from Freddie Mac, mortgage rates are up due to the “one two punch” of strong job and consumer credit growth,

“Mortgage rates are currently 0.82 percent higher than a year ago, which is the biggest year-over-year increase since May 2014,” said Sam Khater, Freddie Mac’s Chief Economist. “Looking ahead, annualized comparisons for mortgage applications may look weaker than they appear, but that’s primarily because of the large spread between mortgage rates now and last September, which was when they reached their low for the year.”

To Read The Entire Article From The MReport Click Here

Are you thinking about taking advantage of today’s still historically low rates?

Are you not sure where to begin?  Contact us and we will help guide you through the steps of purchasing a home.  We have a list of reputable lenders you can speak with.  We’re here to make sure you have real expectations and to help you find your dream home.