Expert Home Stagers in Fairfax, VA

What's the Cost of Waiting for rates to Come Down? Not exactly eye candy but the above chart shows the past 5 years of escalating median home prices in the DC area. Looking at year over year second quarter peaks, we see an average yearly increase of 6.6%. Obviously there's a lot more that goes into the decision of when to buy but if we just look at the numbers using a mid-price on the chart of $450,000, every year that passes represents an increased home price of approximately $29,700. When we compare that $450K mortgage cost at 7.2%, 6.2% and 5.2% we get savings of $299/month or $3588 /year when rates drop from 7.2 to 6.2% and $285/month or $3420/year when they drop from 6.2 to 5.2%. Even if rates dropped by an entire 2% in one year, it's more cost effective to not wait.