If you’re a renter with a desire to become a homeowner, or a homeowner who’s decided your current house no longer fits your needs, you may be hoping that waiting a year might mean better market conditions to purchase a home.

To determine if you should buy now or wait, you need to ask yourself two simple questions: The first question is, what will home prices be like in 2022? Homes are expected to appreciate about 6.27% next year. That means, if you delay for a year, it could cost you more. 

And the second question is where will mortgage rates be by the end of 2022. Mortgage rates are also expected to rise as the economy continues to recover. They are projected to be about 3.7% in a year’s time, that’s nearly a full percentage point higher than today’s rates. Any increase in mortgage rates will increase your costs. 

Now, if both home values and mortgage rates rise, you’ll pay more in mortgage payments each month which will really add up over the life of the loan. So, when asking when to buy, the financial benefits make it clear that doing so now is much more advantageous than waiting until next year.

Where do you feel home prices and mortgage rates are headed over the next year?