Money Monday...Concerned About Rising Interest Rates?

A few things to consider:

Rates are still historically low. The chart below from Freddie Mac shows the average 30 year interest rate was 6.04% as recently as November 20, 2008!
Rates have not averaged below 6% the past four decades! (please see Freddie Mac Chart from KCM below)
The amount of money borrowed, property taxes, and HOA typically have a much greater impact to monthly payment than a slight increase in mortgage interest.

Example:

$300,000 mortgage loan amount

30-year fixed mortgage

4.625% interest rate - $1,542 (monthly principal and interest payment)

5.000% interest rate - $1,610 (monthly principal and interest payment)

Payment Difference: only $68 a month

The purchase market is healthy! According to Tina Tamboer of the Cromford Report, prices are projected to continue to rise over the next 3 – 6 months.
The Cromford Report also notes that buyers typically have the most “buying power” in the 4th quarter of the year.
Positive economic news continues to make headlines, including:

The Job Market, Consumer Confidence and Economic Outlook:

- Consumer Confidence: CNBC

- Economic Outlook: Washington Examiner

Freddie Mac Interest Rate Chart: