After finishing 2014 with near historic lows at 3.7-3.9%, it’s hard to believe affordability for buyers could get much better.
However, the golden ages for buyers may be coming to an end. According to the website Investopedia, interest rates are expected to rise in the latter half of 2015.
“If they do jump to the 5% range it will be a modest hike when compared to historical averages. Rates will still be far below the approximately 8.5% 30-year fixed-rates mortgages have averaged since 1971 when Freddie Mac started tracking them.”
Projections are as follows:
So what does this mean for today’s buyers? I think it’s obvious what I’m about to say: If it’s been on your plate for the past few years, stop waiting. Buy now! Although we are still in a seller-favored low inventory market, there’s still a huge opportunity to obtain a very affordable mortgage.