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“Should I wait to buy?” is perhaps the question you are asking yourself today. Maybe you see an opportunity to purchase a new home now, but are unsure about the timing. Well, consider the following information:

2 Factors Influence The Cost

1. A home’s appreciation over time
2. The interest rate that a buyer must pay to purchase a home

These are the two factors that influence the cost of a home. Because these two factors are not static unchanging things, their rate of change is called the The Cost of Waiting.

Does Waiting Make Sense?

Well, a recent national survey of economists, real estate experts, and investment strategists indicated that home values will appreciate by 4% in 2015 (first influence of cost).

Freddie Mac predicts a 4.5% appreciation in the 30-year mortgage rate by the end of 2015 (second influence of cost).

Meaning what exactly?

Today, a $250,000 mortgage at an interest rate of 3.66% would mean a payment of $1,145.06. In the fourth quarter of 2015 though, the payment increases to $1,317.38 as interest rates and appreciation increases.

So the cost-of-waiting increases by $172.32 in 2015 in this scenario.

Meaning what exactly, again?

Meaning it probably doesn’t make sense to buy later.