Predicting the future
If buying a home is anywhere in your sights, you’ll probably want to act fast. According to a new forecast, average mortgage payments will jump nearly 10 percent by early next year.Verify your new rate (Feb 26th, 2020)
Mortgage payments to climb
It seems on-the-fence homebuyers need to pull the trigger. According to new data from CoreLogic, the typical mortgage payment will likely jump 9.7 percent by March 2019, thanks to rising rates, inflation and higher home prices.
All in all, the typical mortgage payment will come out to around $942 – a steep jump from the average $859 seen in March this year.
The forecast also predicts an increase of 3.9 percent in median home price and a jump in mortgage rates of 46 basis points. Incomes are also expected to jump, though not as much. The forecast predicts a rise of just over 3 percent in the same period.
“While the U.S. median sale price has risen by just under 7 percent over the past year the principal-and-interest mortgage payment on that median-priced home has increased nearly 10 percent,” according to CoreLogic’s Andrew Lepage. “Moreover, the CoreLogic Home Price Index Forecast suggests U.S. home prices will be up 5.8 percent year-over-year in March 2019, while some mortgage rate forecasts suggest the mortgage payments homebuyers face will rise twice that much.”
More inventory to the rescue
Fortunately, for buyers who want to act before the impending rise, it seems homebuilders may be able to help.
According to the most recent data from the U.S. Census Bureau and the Department of Housing and Urban Development, housing starts were up a full 5 percent last month. They’re also up more than 20 percent over May 2017’s numbers.
Housing completions are also on the rise, increasing 11 percent from April to May.Verify your new rate (Feb 26th, 2020)
Get today’s mortgage rates
Want to lock in those lower mortgage payments before they start to rise? Then shop around and see what rates you qualify for today.Verify your new rate (Feb 26th, 2020)