Interest Rates Remain at Historic LOWS.. But for How Long?

interest rates
The interest rate that you obtain on a mortgage is so important not only to your monthly payment but also the price of the home you can afford.  Currently the interest rates are at historic lows so you can afford more home for less money.  As prices rise (and I believe they will over the next year) the home you want may be out of your reach.  If you add an interest rate hike to that equation the home of your dreams may be way beyond your means.  Why wait?  We can get you into a new home with a fantastic interest rate before Christmas!


Courtesy of Keeping Current Matters September 2016

The 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 below shows how far rates have fallen this year (on the left), and uses an average of the projections from Freddie Mac, Fannie 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.

Mortgage Rates - 30-Year Fixed Rate | MyKCM

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.

Remember it is always toasty in Naples and you deserve your piece of Naples sunshine and a low interest mortgage.

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