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With interest rates still in the low 4%’s, many buyers may be on the fence as to whether to act now and purchase a new home, or wait until next year. 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
§ 5.2% – National Association of Realtors
Even an increase of half a percentage point can put a dent in your family’s net worth.
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.