Rising Mortgage Rates Mean The Time To Buy Is Now!

Posted by on Monday, January 30th, 2017 at 1:23pm.

Mortgage rates have been on the rise since around August of last year.

Rates, which on a 30-year fixed mortgage were at an all-time low of around 3.25% last year, are now not expected to go lower than the 4% mark anytime soon. This seemingly small hike can add hundreds, sometimes thousands, of dollars to a home buyer’s yearly payments. 

For example, for a $200,000 house at the rate of 3.25%, your monthly mortgage payment would be $870.41. For the same house at the current rate of 4.25%, the monthly payment would be $983.88. Over the course of a 30-year loan, that extra bit a month adds up to $40,000.

"Experts in the field expect that mortgage rates will remain at this plateau for now or will rise in the near future," says Christina Lane, senior mortgage loan officer with Movement Mortgage. 

Redfin has now updated its forecast and is predicting the 30-year mortgage rate will pass the 4 percent threshold in the coming year. 

So...what does that mean for home buyers? 

With rates only getting higher, now is the best time to get off the fence and consider buying a home. Although not everyone considers mortgage rates when looking to buy, the rate you get can make all the difference in you affording your dream home. As of now you can get more home for your money, but with rates going up, your options are going to go down. 

If you're thinking of buying, now is a great time to talk financing with a loan officer and see how much you can afford in the coming months. 

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