Mortgage rate increases have been seen an increase around the Oakland County, Michigan area and there is talk that they may even increase more before the end of the year. Many homebuyers have noticed the increase in home prices but mortgage rate increases are a little bit harder for homebuyers to calculate in the terms of what it will cost them in the long run.
Understand Mortgage Rate Increases
In order for homebuyers to understand how mortgage rate increases will affect them here is a little help. In this model a less than one percent mortgage rate increase would result in a $100 increase in a homebuyer’s mortgage payment. Since the costs of homeownership are influenced by many factors such as what rate at which home prices will increase in Oakland County and what current mortgage rate increases are on the way or forthcoming. Making a specific calculation would be difficult as home prices continue to rise along with mortgage rate increases.
The question becomes, what should home buyers do and what should they expect in the future? Since the economy has become stronger and an improved job market will make it more likely that the Feds will continue to increase mortgage rates throughout this year. On the bright side, mortgage rates continue to be at a historical low still today by any standard, the mortgage rate increases will continue to edge upward taking mortgage payments along with them.
Take Away
If you are a potential homebuyer in today’s market all of this can be concerning, but there really is no need to panic in regards to mortgage rate increases, and this should not sway you in an emotional hasty home purchase, but rather make you aware of what is expected in the future. My advice would be to start your home search armed with the facts and find the perfect home that you love and are happy with, don’t settle for less than what will make you happy. In the long run owning a home is not only a great investment but is also the place where you will make many memories, raise a family and be a part of the American dream.