- Mortgage interest rates are still low—for now. A 30-year-fixed-rate loan now averages 4.16%, according to Freddie Mac, but many economists believe we will see 5.25% rates next year. As interest rates increase, so do your monthly payments.
- Purchasing a house at 250,000 using a FHA loan with 3.5% down at 4.16% interest rate, would have a monthly payment of $1,157. With a 5.25% Interest rate, that payment increases to $1,380. (Amounts do not include taxes, insurance, or PMI. Source Realtor.com)
- Mortgage rates will rise - Though at historic lows, there are factors that play into current rates, such as support from the Federal Reserve and moderate economic growth. These may not hang around for long. (Source:ONQFinancial.com)
Home prices are rising. The median price of an existing home was $223,300 in June, or 4.3% higher than June 2013. That’s the 28th consecutive month of year-over-year price gains, and economists expect that trend to continue.(Source: Realtor.com).
- Home prices are increasing - With Sellers markets forming in many areas around the country, homebuyers should act now before prices rise even more. (Source:ONQFinancial.com)
Rising Rents – With rents rising at around 3% growth each year, taking advantage of affordable homes right now can benefit you in the long run.