Which Way Are Interest Rates Heading In The Next Year

Dated: 09/15/2016

Views: 869

Image titleThe interest rate you pay on your home mortgage has a direct impact on your monthly payment; The higher the rate, the greater your payment will be. That is why it is important to look at where the experts believe rates are headed when deciding to buy now or wait until next year.

The 30-year fixed mortgage rate has fallen half a percentage point since the beginning of the year and has remained at or below 3.5% for the last 11 weeks according to Freddie Mac’s Primary Mortgage Market Survey.

The chart above shows how far rates have fallen this year (on the left), and uses an average of the projections from Freddie MacFannie Mae, the Mortgage Bankers Association and National Association of Realtors (on the right). 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 CoreLogic’s latest Home Price Index, national home prices have appreciated 6.0% over the last year and are predicted to be 5.4% higher next year.

If both the predictions of home prices and interest rate increases become a reality, families will wind up paying considerably more for their next home.

Bottom Line

Even a small increase in interest rate can impact your family’s wealth. Let’s get together to evaluate your ability to purchase your dream home.

Thinking of Selling a home? Click here for a FREE Home Price Evaluation

Considering Buying? Click here to perform a full home search

This Blog courtesy of Will Cook, Will Cook Group, Palm Springs, CA 

© 2016 Will Cook Group. All Rights Reserved

Blog author image

Will Cook

Ranked in the top 1% of all agents valley wide, Will is an Associate Broker and Team Leader of the WILL COOK GROUP with Keller Williams Luxury Homes. A native of Baton Rouge, Louisiana, Will atten....

Latest Blog Posts

3 Real Estate Myths In Todays Current Market

Today I want to take a look at the top three myths about our current real estate market:1. We are headed toward another housing bubble. Home prices have appreciated year-over-year for the past

Read More

Palm Springs Area Real Estate Market Update Summer 2018

It is time for another market update. In general, we have continued to be in a strong seller’s market. The months of supply ratio is a figure that measures the balance between supply and demand in

Read More

3 Tips To Become A Successful Vacation Rental Owner

I am coming at you from one of my new listings (a beautiful vacation rental with three bedrooms and two bathrooms) to ask, “How can you be successful with vacation rentals in the Palm Springs?

Read More

An Opportunity For Move Up Buyers

As you saw in my last market update for Palm Springs, the real estate market remains red-hot. Palm Springs has actually surpassed its all-time high in the single-family market.In fact, Zillow

Read More