Interest rates are always in the news - and always the hot topic when it comes to entering the real estate market; at any price point.
So in my reading recently, I came across the article below that may offer some insight on how current & anticipated interest rates might impact you & your family's real estate decision making.
If you look at what the experts are predicting for 2015, it may make the decision for you.
Predictions for 2015 3Q:
4.6% - Fannie Mae
4.8% - Freddie Mac
5.2% - Mortgage Bankers Association
Let’s look at it this way…The monthly payment (principal & interest only) on a $250,000 home today, with the current 4.1% interest rate would be $1,208.
If we take that same home a year later, the Home Price Expectation Survey projects that prices will rise about 4% making that home cost $10,000 more at $260,000.
If we take Freddie Mac’s rate projection of 4.8%, the monthly mortgage payment climbs to $1,364.
Some buyers might not think that an extra $156 a month is that bad. But over the course of 30-year mortgage you have spent an additional $56,160 by waiting a year."
With these expected changes in interest rates - take the opportunity now to make the most of your real estate buying power!
And as always, please let me know if you have any questions!
Source: KCM Blog