For the third time in 2017, the Federal Reserve has modestly increased interest rates, showing its continued confidence in the U.S. economy. Lawrence Yun, Chief Economist for the National Association of REALTORS, is predicting the 30-year fixed mortgage rate will continue to rise next year to an average of 4.5%. Currently, rates are around 3.9%.
What does this mean for you? If rates rise to 4.5%, the monthly principal and interest (P&I) payment on a $150,000 mortgage loan will increase from $707 to $760. Even at 4.5%, rates would still be on the very low side historically, making this year and next a great time to buy.
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Historical Mortgage Rates, 1972-2017