Mortgage Rates: What Goes Up Must Come Down…And Vice-Versa
As of last week the Mortgage Bankers Association predicts mortgage rates are likely to stay below 4 percent through the middle of 2013. After that mortgage rates will continue to increase gradually as the economy improves and finish around 4.4 percent in the fourth quarter of 2013. Rates will again increase slightly to average 4.5 percent in 2014. The increase in rates will impact buyers. If you are a buyer who has waited for the bottom you may have already missed a great opportunity to keep down the cost of buying a home.
What Does This Mean to a Buyer?
Keeping Current Matters published the following chart to demonstrate what impact certain changes would have on the mortgage payment of a home selling for approximately $200,000 today: