Mortgage interest rates have risen by more than half of a point since the beginning of the year, and many assume that if mortgage rates rise, home values will fall. History, however, has shown thisnot to be true.
Where are home values today compared to the beginning of the year?
While rates have been rising, so have home values. Here are the most recent monthly price increases reported in theHome Price Insights ReportfromCoreLogic:
January: Prices were up 0.5% over the month before.
February: Prices were up 1% over the month before.
March: Prices were up 1.4% over the month before.
Not only did prices continue to appreciate, the level of appreciation accelerated over the first quarter.CoreLogicbelieves that home prices will increase by 5.2% over the next twelve months.
How can prices rise while mortgage rates increase?
“In the current housing market, the driving force behind the increase in prices is a low supply of both new and existing homes combined with historically low rates. As mortgage rates increase, the demand for home purchases will likely remain strong relative to the constrained supply and continue to put upward pressure on home prices.”
If you are thinking about moving up to your dream home, waiting until later this year and hoping for prices to fall may not be a good strategy.
Author:John and Ashley Lazosky Phone: 702-281-1198 Dated: June 11th 2018 Views: 29 About John and Ashley: We are the Broker/Owners of Vegas Homes and Fine Estates. We are proud to say we have a combined 22...
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Vegas Homes and Fine Estates has over 15 years combined experience in the Real Estate industry AND have represented 100’s of buyers and sellers helping them realize their real estate dreams. As Broker/Owner of Vegas Homes and Fine Estates, I have consistently ranked in the top 1% of agents in the Las Vegas Valley. Combined with my husband and partner JOHN, we are an UN-Stoppable FORCE in the Vegas Real Estate MARKET!!! With complete knowledge of the Las Vegas marketplace and personalized client services… you can expect your home buying needs will be serviced properly and protected.
We strive for perfection here at Vegas Homes and Fine Estates and look forward to speaking with you about the Vegas real estate market !!
1. Prices Will Continue to RiseCoreLogic’s latest Home Pri
"I can't say enough about John and Ashleys combined knowledge, experience and integrity. When they sold us our house they were able to respond quickly and show me the property. They guided us through the short sale process and were able to negotiate an $18K dollars off the banks asking price. IF you want an agent that works Real Estate as a professional and not just a hobby, then I think you should call John and Ashley. You'll be happy that you did. "