With interest rates still in theÃ‚Â low 4%Ã¢â‚¬â„¢s, 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 experts are predicting for 2015, it may make the decision for you.
Predictions for 2015 3Q:
4.6% -Ã‚Â Fannie Mae
4.8% -Ã‚Â Freddie Mac
5.2% -Ã‚Â Mortgage Bankers Association
5.2% -Ã‚Â National Association of Realtors
Even an increase of half a percentage point can put a dent in your familyÃ¢â‚¬â„¢s net worth.
LetÃ¢â‚¬â„¢s look at it this wayÃ¢â‚¬Â¦
The monthly payment (principal & interest only) on a $250,000 home today, with the current 4.1% interest rate would beÃ‚Â $1,208. If we take that same home a year later, theÃ‚Â Home Price Expectation Surveyprojects that prices will rise about 4% making that home cost $10,000 more at $260,000. If we take Freddie MacÃ¢â‚¬â„¢s rate projection of 4.8%, the monthly mortgage payment climbs toÃ‚Â $1,364. Some buyers might not think that an extra $156 a month is that bad. But over the course of 30-year mortgage you have spent an additionalÃ‚Â $56,160Ã‚Â by waiting a year.
Seven Gables Real Estate
5481 E Santa Ana Canyon Road
Anaheim Hills, CA 92807