Mortgage rates have increased this year. According to many experts, it is likely to rise further during 2015. This is important news for prospective buyers. Mortgage rates on the rise in 2015 and tips for real estate consumers in MA is provided in this article.
Affect of Mortgage Rates On The Rise In 2015
The calculation of your recurring payments are a result of the mortgage rate. A change in mortgage rates will reduce your approval amount or make the mortgage payment higher for the same house. Even a small surge can create a difference. If you are searching for a property at the higher end of the price range, a tiny change could really affect you.
The following is an example of how pre-approvals may alter with mortgage rates. This assumes a set down payment percent and keeping the same mortgage payment.
| Mortgage Rate | Price Max |
|---|---|
| 4.00% | $449,773 |
| 4.25% | $436,494 |
| 4.50% | $423,791 |
| 4.75% | $411,636 |
| 5.00% | $400,000 |
Additional Market Changes to Consider
Other than mortgage rates, real estate prices may also move. In many regions, home prices have been increasing progressively for more than a year. Certain markets are seeing bidding wars and offer prices above list. A lot of this is a result of low listing volume and high demand.
Tips For Real Estate Consumers In MA When Determining Whether to Buy Now or Wait
Inclining mortgage rates and home prices both have a negative effect on home buyers. People will notice that they can afford less and less over time. The condition of homes within price point will diminish too. Considering this, it is seemingly best to act now rather than waiting.
What to Anticipate During the Spring
Spring is usually the busiest time of year for real estate. There will be more houses for sale to satisfy the built up demand, but be ready for competition. Home buyers electing to act will benefit from still somewhat low mortgage rates. Additional increases in property values will offer a chance to gain equity in a shorter period of time than usual.