And how will they impact your monthly payments?
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 know where rates are headed when deciding to start your home search.
Below is a chart created using Freddie Macs U.S. Economic & Housing Marketing Outlook.
As you can see, interest rates are projected to increase steadily over the course of the next 12 months.
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.
According to CoreLogics latest Home Price Index, national home prices have appreciated 7.0% from this time last year and are predicted to be 4.2% higher next year.
If both the predictions of home price and interest rate increases become reality, families would wind up paying considerably more for their next home.
Bottom Line
Even a small increase in interest rate can impact your familys wealth.
Before we sign off, let’s talk about the Seattle market…
For details and trends about the Seattle real estate market, get your copy of the latest Metropolist Magazine. For best results, skim then contact your trusted Metropolist broker and review your options with a professional.
Because collaboration and education matter.
