Predictions for 2014: The Cost of Waiting

From the National Association of Realtors.

I think that 2014 is going to be a great year to buy a home. People sometimes wonder what the difference is if the interest rate goes up. If you are buying a home around $250,000, the principal and interest part of the loan will increase by around $150 if the interest rate goes from 4.3% to 5.3%. Either you can afford to make higher payments OR your payments will stay the same because you bought a cheaper home.

Predictions for 2014: Mortgage Rates

Table from the National Association of Realtors.
Projected rates provided by lenders.

Mortgage rates have been really low. Most of us recognize that the lower interest rates won't last forever. Today's interest rate for a 15-year mortgage is around 3.7% to 4%. The interest rate for an FHA loan with fixed payments for 30 years is around 4.5%. Here are the predictions from government institutions like Fannie Mae & Freddie Mac, the mortgage banking community, and the National Association of Realtors.