1. What was motivating me to buy a home in the first place?
Of the three, this is the most important question to answer. Financing aside, what is your big 'why' for purchasing a home? For most people, the answer or 'why' will have nothing to do with money.In a study by the Joint Center for Housing Studies at Harvard University it revealed that the top reasons Americans buy a home have nothing to do with finances. They want to buy a home because it's:
- A good place to raise children and for them to get a good education
- A place where you and your family feel secure
- More space for you and your family
- A place where you have better control of that space
2. Where are home values headed?
According to the most recent Existing Home Sales Report from the National Association of Realtors (NAR), the median price of homes sold in May (the latest data available) was $252,800, up 5.8% from last year. This increase represents the 63rd consecutive month with year-over-year gains.Looking at home prices year over year, CoreLogic is forecasting an increase of 5.3% over the next year. In other words, a Havertown home that costs you $350,000 today will cost you $368,550 if you wait until next year to buy it.
3. Where are mortgage interest rates headed?
While prices are of concern, so are rates. The ‘long-term cost’ of a home can be dramatically impacted by even the smallest increase in mortgage rates. The Mortgage Bankers Association (MBA), NAR, and Fannie Mae have all projected that mortgage interest rates will increase over the next twelve months, as you can see in the chart below:
