How has the cost of buying a house changed in the last few years?

The cost of a home is determined mainly by two components: price and mortgage rate.
How has the price of a home purchase changed over the last twelve months?  How might it change over the next twelve months?

LAST YEAR

The median priced home in the country was selling for $187,800. The 30-year fixed mortgage rate was at 3.5%. Here is what it would cost to buy a home last year:

TODAY

The median priced home in the country is selling for $213,500. The 30-year fixed mortgage rate is at 4.5%. Here is what it would cost a purchaser to buy a home today:



The monthly cost increased by: $190.78!

 

Next Year's Projections: 

Projecting into the future in real estate can be rather tricky. Future pricing was based on a survey taken by 100 housing experts (Home Price Expectation Survey) who called for an approximate appreciation rate of 5% over the next twelve months. The interest rate is based on the projections from the Mortgage Bankers’ Association, Freddie Mac and Fannie Mae.
Here is what these experts project will be the approximate cost of a home a year from now:



The monthly cost will increase by about: $97.32!

Bottom Line

From a financial perspective, why wait if you are thinking about buying?