Mortgate rates are still hovering around the 4.5% area for now, but thats not going to last. In 2014, which is only 2 weeks away, rates will rise to 5% and above the experts say. What does that mean for the home buyer? Will you be able to afford a home? Of course you will. Don't be alarmed that rates are rising. Prior to the economic collapse a few years ago, rates were 6, 7, or 8%. That has been common over a long period of time. 5% is still a great rate and not a reason to stop looking for a home. If you a waiting to see if the 3.5% rates are coming back, I'm sorry to say you will be waiting a very long time. DON'T WAIT TO BUY A HOME...BUY NOW if you are in the market for a new home. The difference between 5% and 6% on a 300,000 mortgate is approximately $189 per month. I know that I would rather have that money at my disposal than to pay it in mortgage interest.
As with any real estate transaction, do your due diligence and seek professional advice. You could save alot of money just by making a few phone calls.
Here are some more predictions for 2014 from the so called experts:
http://www.cnbc.com/id/101261686
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