Interest rates are hovering in the low 4% range right now. Rates are expected to increase in 2015. How far are experts expecting rates will go?
According to the following experts, these are the 2015 predictions:
4.6% - Fannie Mae
4.8% - Freddie Mac
5.2% - Mortgage Bankers Association
5.2% - National Association of Realtors
Although still relatively low, this increase can significantly impact a buyer. For example, if purchasing a $250,000 home today at a rate of 4.1%, a monthly payment (principal & interest only) would be $1208. At Freddie Mac’s projected rate of 4.8%, the monthly mortgage cost climbs to $1364. An extra $156/month may not seem bad, but over the course of a 30-year mortgage you have spent an additional $56,160 by waiting until 2015.