Where are interest rates going for Hudson Valley buyers this winter?

The interest rate buyers pay on their new home mortgage has a direct impact on their monthly payment. The higher the rate the greater the payment will be. That is why it is important to look at where rates are headed when deciding to buy now or wait until next year.

The chart was created using Freddie Mac’s October 2015 U.S. Economic & Housing Marketing Outlook data. As you can see interest rates are projected to increase steadily over the course of the next 12 months.

Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly.

According to CoreLogic’s latest Home Price Index, national home prices have appreciated 6.4% from this time last year and are predicted to be 4.7% higher next year. National home price changes affect interest rates even if those price increases haven’t happened in the Hudson Valley real estate market.

If both the predictions of home price and interest rate increases become reality in the Hudson Valley, families would wind up paying considerably more for their next home.