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Email Jan & Wally
Jan Bigelow: 928.300.1699
Wally Reule: 928.301.5943
· Home prices are still on the rise
· Mortgage rates are increasing
· Disposal income is increasing at a slower rate
Are you trying to wait out buying a new home, hoping you can get a higher price for your current home? It’s true that there are signs the market is shifting toward the favor of home buyers, yet prices are still on the rise in many areas around the country. The median sales price in July was $230,411, up 5.8 percent since last year.
But along with rising prices come higher mortgage rates. In fact, the typical mortgage payment jumped 13.1 percent since last year due to a 0.6 percentage point increase in mortgage rates, according to new data from CoreLogic, a real estate research firm based in Irvine, California.
CoreLogic predicts that mortgage rates are going to keep rising, too, by as much as 10% by July of 2019, equivalent to .43 percentage points, while median home prices should continue to increase by 1.8% through the same time period.
Furthermore, real disposable income is expected to increase by only around 2.5 percent during that same time period, meaning home buyers will see a larger chunk of their income required for their mortgage payment.
However, while mortgage payments are on the rise, they’re still low compared to recent history. For example, a typical inflation-adjusted mortgage payment in 2018 was still 26.8% lower than the all-time peak of $1,280 in July 2006, and the average mortgage payment rate in June of 2006 was 6.7% compared to 4.5% this past July.
In summary, if you’re in the position to buy, now is the time. Contact Wally or Jan to get the process started!