When I bought my first house I think our rate was 14%. It was high, but all we wanted to do was buy a house of our own. While home prices have increased dramatically, first time home buyers are very fortunate to offset that with the current rates. Could you imagine what it would be like to pay $1,000,000 plus have an interest rate of 14%? It would be crazy!
For any present or future buyers, it is good to be aware of the projected mortgage rates. Below are a few main points that were taken from Keeping Current Matters Blog Post:
- 30-year mortgage rates are projected to increase by a full percentage point in 2016
- Rates are still well below the past four decade averages
- The interest rate at which you borrow the funds to purchase your dream home makes a huge difference on your monthly payment