Most buyers are still on the fence whether or not they should purchase a home right now. It all depends on your situation but experts at CoreLogic and the Mortgage Bankers Association are predicting home prices in the U.S. to continue to rise 5.9% and 5.2%, respectively.
Using a conservative appreciation rate of 5%, I have computed what a $400,000 home bought in July 2022 could be worth in July 2027.
With this approach, a $400,000 home could gain $110,512 in equity in just FIVE years!
“But interest rates are up!” – the general consumer
Check out this blog post that explains how the interest rates compare to the past decades. In short, interest rates may not be as low as they were a year ago, but they are still exceedingly lower than the interest rates in the 1970-1990s. Why not lock in your mortgage payment now, and refinance when the rates lower and your home has gained equity?
