If you average the most recent projections from the major industry forecasters, the expectation is home prices will increase by 7.7%. Let us take a house that is valued today at $325,000 as an example: If the buyer makes a 10% down payment ($32,500), they’ll end up borrowing $292,500 for their mortgage. Applying the projected rate of home price appreciation, that same house will cost $350,025 next year. With a 10% down payment ($35,003), they would then have to borrow $315,022. Therefore, because of rising home prices alone, a prospective buyer will have to put down an additional $2,503 and borrow an additional $22,523 just for waiting a year to make their move.