Where will mortgage rates head in 2014?
The Mortgage Bankers Association, Fannie Mae, Freddie Mac and the National Association of Realtors have each projected that the 30 year fixed rate mortgage will have interest rates in excess of 5% by this time next year. The average of their four projections is 5.3%. The table below shows the impact this will have on the monthly principal and interest payment on a $250,000 mortgage:
While it is hard to say exactly where interest rates will end up, we are anticipating an increase, as well as a steady increase in home prices. What does that mean for you? If you’re a first time home buyer or move up buyer on the fence, the time to act is now. We’ve got a decent supply of inventory, with plenty of reasonably priced homes at affordable rates. If you’d like advice on when to move, where to look, or how to start the home buying processes, contact us today. Check out our home buyer’s resource guide and start your search