… our interest rate was over 10%. Today, a homebuyer can get a mortgage for over half of that. The big question is where are rates going? Industry speculation is that the interest rates will rise, some experts are predicting it could increase by 1%. Your buying power is greater with a lower interest rate. When will you act?
With interest rates 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.
If you look at what the four major reporting agencies are predicting for 2016, it may make the decision for you. The chart below averages the predictions by quarter.
With the exception of Fannie Mae, the experts agree that interest rates will increase by three-quarters of a percentage point, costing you more to pay back your loan.
Even a small increase in interest rates can put a dent in your family’s wealth.