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 this not 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 the Home Price Insights Report from CoreLogic:
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:Andrea Semanko Phone: 360-840-9309 Dated: May 17th 2018 Views: 55 About Andrea: As a northwest native, I have a great understanding of Skagit, Island and Snohomish Counties as to t...
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Making the choice to buy or sell a home is a big decision. It is a fun, stressful, exciting and overwhelming all at the same time. It is my job as your broker to be your guide through the entire process. I have a Bachelors degree in Communication and I believe that effective communication leads to a happy real estate experience. Listening is the number one rule of good communication so I make sure I listen to you. I listen to your wants, needs, questions and concerns and I make sure to understand in order to best serve you. I work hard to coordinate and communicate with all parties involved to insure the process happens smoothly from start to finish. Real estate is my passion and I take great pride in my work and pride in my ability to make your home buying or selling experience a positive one. I look forward to the opportunity to help you.
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