Where are Mortgage Rates Headed?

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Real Estate Agent with Realty Executives Boston West 113011

Where Are Mortgage Rates Headed?

Where Are Mortgage Rates Headed? | Simplifying The Market

The interest rate you pay on your home mortgage has a direct impact on your monthly payment. The higher the rate the greater the payment will be. That is why it is important to look at where rates are headed when deciding to buy now or wait until next year.

Below is a chart created using Freddie Mac’s February 2015 U.S. Economic & Housing Marketing Outlook. As you can see interest rates are projected to increase steadily over the course of 2015.

30-Year Fixed Rate Mortgage Projections | Simplifying The Market

How Will This Impact Your Mortgage Payment?

Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly.

Research released by Zillow touched on this point:

“As rates rise, new home buyers will confront higher financing costs and monthly mortgage payments. For many, this will mean tightening their budgets and sacrificing some luxuries they may take for granted today.”

The experts predict that home prices will appreciate by 4.4% over the course of 2015. If both predictions become reality, families would wind up paying considerably more for their home.

Bottom Line

Even a small increase in interest rate can impact your family’s wealth. Meet with a local real estate professional to evaluate your ability to purchase your dream home.

That old saying "that is the $64,000question"  but they are going up. It is still a far cry from what many of us were used to in the old days 6,7,8,9,10,and up to 18.50% in the 1980's. 

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Home Buying
Location:
Massachusetts Norfolk County Needham Needham Heights
Groups:
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Rainmaker
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Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

I saw this information the other day too...thanks for sharing and have a great weekend

Feb 26, 2015 11:12 PM #1
Rainmaker
317,487
Pat Laracy Baker
Realty Executives Boston West - Holliston, MA
Pat Baker Dream Home Maker

Hi Kristen. Thank you for the comment. Have a great weekend too. Sell a house or two or three!!!!

Feb 26, 2015 11:18 PM #2
Rainmaker
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Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

Hi Pat:

  I have been working with several buyers who have things on hold.  I am going to share this information with them.  I don't think they fully comprehend how a seemingly small upward change in the interest rate can have a big impact on their buying power.

Feb 28, 2015 11:02 AM #3
Rainmaker
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Pat Laracy Baker
Realty Executives Boston West - Holliston, MA
Pat Baker Dream Home Maker

Thank you for your comment.  I know Joan I have too.  This is totally ridiculous. So little inventory and if they do not act who knows how high the interest rates will go.

Mar 01, 2015 09:36 AM #4
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Rainmaker
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Pat Laracy Baker

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