How Mortgage Rates Affect Buying A Naperville Home Today

The Naperville real estate market is getting better.  It’s definitely on the way back up.

If you’re thinking of buying a home in Naperville, it’s a good time to buy right now.  Tomorrow, it might not be as good.  Here’s why.

naperville real estate and mortgages

Mortgage rates are predicted to go up by The Mortgage Bankers Association, Fannie Mae, and The National Association of Realtors.  Their estimate is that the 30-year rate will be at 4% by the end of this year.

In addition, most home pricing indexes are estimating that home prices will go up roughly 3-5% over the next year.

Consider that the average house in Naperville sells for roughly $425,000 today.  In a year from now, not only will the price of that house have gone up, but so will have interest rates.

If you buy that same house in 12 months, at a higher price and interest rate, the increased cost to you for that exact same home is about $220 more per month for your interest and principal payment. 

By waiting just 12 months to buy, that exact same house is costing you hundreds more per month.

Below is a chart that shows the increase you’d expect at different price ranges if you were to buy today vs. in a year from now.

naperville mortgage payment increases

If you can’t afford to buy a house today, then don’t get yourself in a financial mess trying to do so.

However, if you’re looking to buy and feel like it would be financially comfortable to do so, contact us and we’ll set you up with an expert Naperville real estate agent who can help you.

 

 

About John Reh

I moved to Naperville in 1981 and I love this city. As a Naperville-focused real estate agent, I publish this website to promote our community and help current and soon-to-be residents discover the best of Naperville homes and lifestyle. Contact me at any time.

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