Navigating Your Trade Up Move- Do It Early!

trade up moveA new Year, is a new house in store for you? Realtor.com has predicted the Phoenix metro area to be the number one housing market for 2017.  We have experienced steady gains in appreciation, particularly in the lower price points of under 250,000. When folks think the market is heating up they often think about if it’s time to upgrade in size, or upgrade in quality of home. Right now we have the perfect storm of low inventory in homes under 250k, but lots of options and choices in homes over 300k, with a little more ability to negotiate your price.

If you are considering moving up to your dream home, it may be better to do it earlier in the year than later. The two components of your monthly mortgage payment (home prices and interest rates) are both projected to increase as the year moves forward, and interest rates may increase rather dramatically. Contact Us to get started.

Here are some predictions on where rates will be by the end of the year:

Chief Economist of the National Association of Realtors: Lawrence Yun predicts mortgage rates to climb to between 4.5-5% by the end of this year. 

Svenja Gudell, Zillow’s Chief Economist: “I wouldn’t be surprised if the 30-year fixed mortgage rate hits 4.75%”


Just how dramatically does this affect you with a purchase? Here is an example that can show the impact these factors have on your mortgage payment and ability to qualify. So let’s take a purchase amount of 375,000 with a traditional 20% down. Based on today’s average rate of 4.375% , your principle and interest payment would be $1498.00. If we look toward the end of 2017 and all the economists’ predictions. The payment at 4.75% would be $1565.00 monthly.  Depending on how much money you put down that rate can affect you even more reducing how much home you can qualify for.

Contact The Tim and Kym Team  for details on how we can assist you with your trade up move this year!


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