The interest rate you pay on your home mortgage has a direct impact on your monthly payment. The higher the mortgage interest rate, the greater the payment your monthly payment will be. That is why it is important to look at where rates are headed when deciding to buy now, or wait until next year.
Here is a interest rate projections graph from Freddie Macs August 2014 U.S. Economic & Housing Market Outlook:
According to a recent article in Kiplinger, 30 year mortgage rates are about to increase:
Rates for 30-year fixed-rate mortgages will follow suit. Now around 4.1%, rates will edge slowly toward 4.4% by the end of this year. Then theyll follow the Treasury bond rates upward move in early 2015. Thirty-year home loans should end 2015 at around 5.1%, still low by historical standards.
This is all food for thought if you are thinking of buying a home because waiting for a dramatic decrease in mortgage interest rates might not make sense. If your family plans to move-up to a nicer or bigger home this year, it may make sense to move now rather than later.
If you have any question related to your next move, drop me a line.