It is amazing the difference a little percentage point can make in a house payment. Okay, so housing prices in the Harrisonburg area have increased over the past few years (take a look at these trends in more depth), but interest rates — even since January of this year — have dropped. Does it make a difference? YES!
The image below shows what national median home prices were back in January versus what they are now (according to the National Association of Realtors®), compared to the interest rates in their respective time line.
Even with higher prices, the average mortgage payment is lower now than it was just 8 months ago, simply due to a drop in interest rates — which are lower than ever, by the way. This is a decrease of $21.13 a month! Buyers would be able to save that money and use it to buy an occasional fancy-shmancy coffee drink at Starbucks (or their coffee shop of choice), regardless of the fact that home prices are $11,000 more expensive, on average. Wow.
So the real question is this… why wait to buy when the deals are so good right now?
If you’re on the fence about buying, or are ready to start your home search, contact us or comment below. We’d be honored to help you!