Posted by: Marvin Remmich | May 23, 2011

WHERE ARE MORTGAGE RATES HEADED?

We often talk about the COST of buying a house vs. the PRICE
of the home. The price obviously is a major component of the cost. The other
major component is the interest rate on your mortgage. A small hike in mortgage
interest rate can have a dramatic impact on your monthly payment. For that
reason we try to keep you current on what is projected for rates in the future.

Four major
institutions project rates: The National Association of Realtors (NAR), Fannie
Mae, Freddie Mac and PMI. Here is what each is seeing in the next year.

By the Second
Quarter of 2012:

  • Fannie
    Mae predicts an interest rate of    5.6%
  • PMI
    predicts an interest rate
    of
    5.95%
  • Freddie
    Mac predicts an interest rate of   5.6%
  • NAR
    predicts an interest rate
    of
    5.9%

Bottom Line

If you are
looking to buy a house and are waiting to see what will happen with prices,
remember interest rates will also impact your housing cost.

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