There are few expectations of interest rates rising more than once this year according to the latest Federal Reserve meeting this week. Even with this latest news, the consensus is that they will gradually increase through the end of the year. An increase in interest rates -no matter how small- affects buyers’ ability to purchase property, and changes their affordability reach for houses in the market. Let’s have a look at how the conservatively projected 0.5% interest hike for 2016 would change the price of a million-dollar home on a fixed-rate 30 year mortgage:
If you are contemplating buying real estate, holding off until later in the year could cost you an additional $79,029 of mortgage for a million-dollar house. The right time to buy is NOW!