What Do Federal Interest Rate Increases Mean To Mortgages?

What Do Federal Interest Rate Increases Mean To Mortgages? Here is what Barrons.com says about how the interest rate increases will impact mortgages:

“Mortgage rates tend to go up after the Fed raises rates. If you have a mortgage already, the impact depends on whether your mortgage is fixed-rate or variable rate. The vast majority of Americans have fixed rate mortgages, meaning the rate is locked in. But those with variable rates are likely to see rates rise, and they will have to pay more every month.

If you’re looking to buy a home, you will likely have to pay a higher mortgage rate. But that doesn’t necessarily mean you’ll have to buy a smaller or a less desirable house. Higher rates can force home prices down, because sellers must accept the fact that buyers will be paying more in interest, and can presumably afford less in principal.”

Read the entire article at What Todays Fed Rate Hike Means for Your Wallet

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I LOVE what I do! I have been in the Real Estate Industry now for over 13 years and am grateful to have found a career that I enjoy so much. I am highly organized and extremely efficient with a strong background in negotiations which always helps when in the middle of a tough transaction! I welcome all opportunities to work with you whether you are looking for your first home, looking to move to a larger home as your family grows, or looking to expand your portfolio and purchase an investment property. It is a great time for real estate in Boulder County! If you want to learn about what this market means to you and your family, just call or email. Contact me with all of your real estate needs! 

Janet Leap, GRI
RE/MAX of Boulder
Call me – 720.938.4197

Mortgage Rates Are Up. Is It Time To Buy?

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As expected, the average 30-year fixed mortgage rate jumped to 4.51% for the seven-day period ending on July 10th.  That is an increase from 4.29% a week earlier and 3.98% for the second week in June.  The higher rates increased monthly principle and interest payments by roughly 6.5%. The chart at the left illustrates how the increased mortgage rate impacts buyers.

Chart courtesy of the National Association of Realtors’ Economists’ Outlook