When Will Mortgage Rates Hit 5%?
The big question for homebuyers is when interest rates will begin to rise to the 5% mark. The effect of a rise in mortgage rates could be a dramatic increase in the monthly mortgage payment when purchasing a home. In an article last week, HousingWire quoted two different sources regarding this issue.
Most experts are projecting that rates will rise when the Fed decides to taper the purchase of bonds which has acted as a stimulus to the housing market by keeping long term mortgage rates at historic lows.
In the article, Sterne Agee’s managing director and chief economist Lindsey Piegza pointed out:
"Federal Reserve officials said they might reduce their monthly bond buying program from $85 billion 'in coming months' as the economy continues to improve."
The article also quotes Frank Nothaft, chief economist with Freddie Mac:
“By the end of 2014, rates will probably approach and perhaps touch 5%. A reason we see the uptick in rates is that I do think some point the Federal Reserve will start to taper and scale back its very active purchase on long-term Treasuries and mortgage-backed securities.”
Rates will hit 5% sometime in 2014. It might be better to buy sooner rather than later.
Why not buy now? Buyer competion for homes during the holidays, combined with great interest rates make it a great time to buy!
If you are considering a home purchase, give us a call, text or email. Let us negotiate the best price for your new home!
?-Steve and Sandra
Steve Hill and Sandra Brenner
Windermere Real Estate/FN
Seattle-Northwest
122502 Greenwood Ave N
Seattle WA 98133
call/text: 206-769-9577
email: stevehill@windermere.com
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Housing Forcaset
The infographic below shows Fannie Mae's housing forecast as of August 2013. Home sales, prices and mortgage rates are all expected to rise.
When do you think it will be a good time to buy?
If you are considering a first time or move up home purchase, give us a call, we are eager to expalin to you the benefits of homeownership.
Steve Hill and Sandra Brenner
Best In Client Satisfation
Windermere Real Estate
BrennerHill.com
206-769-9577
As Interest Rates Rise, So do Home Prices
It may seem counterintuitive, but historically, as interest rates rise, so do homes prices. Check out the graph below. Every dramatic mortgage increase has also given rise to home prices. Waiting to buy will cost more than an increase in interest rates, the home will cost more too.
Steve Hill and Sandra Brenner
Best In Client Satisfaction
Windermere Real Estate
BrennerHill.com
call/text 206-769-9577