According to the CoreLogic Home Price Index, mortgage rates will rise by .82 percentage points, or 82 “basis points” between January 2018 and January 2019. The CoreLogic forecast suggests the median home sale price will rise 4.1% in real terms over that same period. Based on these projections, the inflation adjusted typical mortgage payment would rise from $773 in January 2018 to $887 by January 2019, a 14.8% percent year-over-year gain. In nominal terms the typical mortgage payment’s year-over-year gain would be 16.2%.
The forecast calls for real disposable income to rise by just under 4 percent this year, meaning home buyers would see a larger chunk of their incomes devoted to mortgage payments.
CoreLogic.com, Insights Blog, April 16, 2018.
