Jones and Associates Realty, LLC Archived Blog

Wow is now the time to buy a home?   The kcm blog this morning nails it!

The cost of a home is determined mainly by two components: price and mortgage rate. Today, we want to show how the monthly cost of purchasing a median priced home has changed over the last twelve months and how it might change over the next twelve months. For the first two examples, we will be using the National Association of Realtors’ (NAR) Existing Home Sales Report to establish median price and Freddie Mac’s Primary Mortgage Market Survey to establish mortgage rate. We also assumed a 20% down payment in all examples.

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

Projecting into the future in real estate can be rather tricky. To establish future pricing, we depended on the over 100 housing experts surveyed for the Home Price Expectation Survey who called for an approximate appreciation rate of 5% over the next twelve months. For the interest rate, we took the average of 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?

Cost of a Home: Impact of Interest Rates

Love this KCM post from Tuesday titled Cost of a Home.    For all you renting please consider what your rents were five years ago and imagine what they will be five years from now.  We have a few rental properties worth around $200,000.  They  rent for $1,200 a month and the same home you could own for $900 a month principle and interest! 

 This is the post and the chart enjoy!

The buyer should always look at the COST of a home, not just the PRICE. The cost is determined by the price and the mortgage interest rate which is available at the time. Below is a list of the interest rates over the last ten years and the impact they have on a $100,000 mortgage payment.

Call, text or email Mark or Monte with the Jones team today to learn how to stop renting and start owning!   We specialize in helping buyers all along the Wasatch front including:

Salt Lake County areas and homes the Jones Team Covers:
Salt Lake, Bluffdale, Draper, Holladay, Kearns, Magna, Midvale, Murray, Riverton, Sandy, South Jordan, South Salt Lake, Taylorsville, West Jordan, West Valley, Herriman, Cottonwood Heights

Davis County Areas and Homes the Jones Team Covers:
Bountiful, Centerville, Clearfield, Clinton, Farmington, Fruit Heights, Kaysville, Layton, North Salt Lake, South Weber, Sunset, Syracuse, West Bountiful, West Point, Woods Cross, South Hooper

Utah Counties and Homes the Jones Team Covers:
Alpine, American Fork, Highland, Lehi, Lindon, Orem, Pleasant Grove, Provo, Vineyard, Saratoga Springs, Eagle Mountain,