Do Not Let Your Luck Run Out

Do Not Let Your Luck Run Out

Image title

The 30-year fixed mortgage interest rate is currently still below 4%. Many buyers may be on the fence as to whether to act now and purchase a new home, or wait until next year, believing they still have time to lock in a low rate.

If you look at what the experts are predicting over the course of the next 12 months, it may make the decision for you.


Predictions for 2016 2Q: Click on the link

4.2% -Fannie Mae 

http://www.fanniemae.com/resources/file/research/emma/pdf/Housing_Forecast_022615.pdf

4.7% -Freddie Mac

 http://www.freddiemac.com/finance/pdf/march_2015_public_outlook.pdf

4.9% -Mortgage Bankers Association  

https://www.mba.org/Documents/mba.org/files/Bulletin/InternalResource/Economic%20Forecast%20Feb%202015.pdf

5.3% -National Association of Realtors

http://www.realtor.org/sites/default/files/reports/2015/embargoes/phs-02-27/forecast-03-2015-us-economic-outlook-2015-02-27.pdf


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 3.86% interest rate would be $1,173.

If we take that same home a year later, the Home Price Expectation Survey projects that prices will rise about 4.4% making that home cost $11,000 more at $261,000.

If we take Freddie Mac’s rate projection of 4.7%, the monthly mortgage payment climbs to $1,354.

Some buyers might not think that an extra $181 a month is that bad. But over the course of 30-year mortgage you have spent an additional $65,160 by waiting a year.


Alessandra Imanabadi Headshot
Author:
Phone: 510-504-2528
Dated: March 17th 2015
Views: 327
About Alessandra: Hi, this is Alessandra and I have been practicing Real Estate for over 14 years because I truly love...

Property Search








RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

Kids Book Fair Festival April 7 To 8 - Greetings moms and dads! Oh
The Magic Of Staging - Let's face it. As consumers we
Oakland Running Festival Marathon - Thinking about running the Bay To
Misguided Impressions About Real Estate Agents - More often than not, the general

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

Nationwide Fine Homes

Hayward, CA
510-962-4590
510-740-3522