Home Buyers Beware: You should know where Mortgage Rates Are Headed

Written by Josh Feinberg Posted On Monday, 02 March 2015 20:58

We finished 2014 with the 30 year fixed mortgage rate at 3.87% as per Freddie Mac. This is very close to the historic lows in the spring of 2013.

Now around 4.1%, rates will edge slowly toward 4.4% by the end of this year. Then they’ll follow the Treasury bond rates upward move in early 2015. Thirty-year home loans should end 2015 at around 5.1%, still low by historical standards

However,The Mortgage Bankers Association, Fannie Mae, Freddie Mac & the National Association of Realtors are in unison projecting that rates will be up 4.4% by the end of this year.The thirty-year home loans should end 2015 around 5.1%.An increase in rates will impact YOUR monthly mortgage payment. Your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.

As rates rise, home buyers will confront higher financing costs and monthly mortgage payments. As rates rise new home buyers will be faced with higher financing costs and monthly mortgage payments. This means they will have to tightening their budgets and give up some of their luxuries.

How this will impact your mortgage Payment

The interest rate you pay on your home mortgage has a impact on your monthly payment. The higher the rate the greater the payment will be.Depending on the amount of your loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly.

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Josh Feinberg

I’m super excited and passionate about what I do and take pride that a lot of my business is word-of-mouth referrals that has created many long-term relationships with people who have bought and sold through me repeatedly over the years. I ‘m more than just a realtor I’m an advocate, facilitator and expert in Phoenix’s often intricate real estate market.

For ten years I’ve helped my clients in setting realistic expectations by considering such factors as budget, desired location and the event of a sale, I’ve helped achieve for them the maximum selling price. Having expertise and experience in the ever changing Phoenix real estate market dramatically has helped shape the decisions of my clients through the complex process that real estate has become.

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