I wish I had a crystal ball. Almost everyday someone asks me if I think prices are going to go down or up … or if interest rates are going to go down or up?
Prices have been rising steadily for over a year. Will that continue? Good question. Real Estate price go up and down seasonally and through regular business cycles. They tend to go up over the long term. There are sometimes huge drops as we saw just a few years ago.
Interest rates have been held to very low rates for the last few years in an attempt to boost the economy. They are almost sure to go up as the economy improves.
What effect does this have on your home purchase you ask?
If prices go up and rates go up your monthly payment goes up — duh.
Surprisingly, if prices go down and rates go up, your payment still goes up
Is it a better choice to wait to see if prices go down before you buy — probably not.
Check out this website to see real world examples. https://edge.mortgagecoach.com/report/edgereport.html#677346-0-0-629850