March 1, 2015: Where are interest rates headed, if you look at national reports, they claim up

Aloha, Lance Owens (RS), here with LUVA Real Estate, we subscribe to KCM and value their research and time they put into getting us the latest on industry news, hope you enjoy the input below.

Side note: I recently did my blog on the where the housing numbers were for 2015 vs 2014, (Before I read their report) and was amazed at how closely they mirrored each other, almost exactly! 

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.

And as usual, I like to leave you with my photo of day from Hawaii : Feb 28, 2015, my wife on birthday, doing what she loves - fun day on her horse in Waimea, Big Island of Hawaii, 

POSTED BY

  

Follow KonaHomeTeam on Facebook Follow us Twitter Follow us on LinkedInGoogle us  Google + Profile   Lance Owens

Click on any of these (above) to follow me on your favorite Social Media site:  

People often make comments about how, as a Realtor I must know about all the deals, honestly, I just put my search criteria in the box below, and have it delevered to me daily ----- Follow this link for your daily report