The impact of rising interest rates; how your monthly mortgage payment will increase as rates and home prices increase
Today the Federal Reserve raised short-term interest rates by a quarter-point and two more hikes are predicted in 2019. If you’re thinking of buying a home, now is the time. While home prices remain steady, increasing rates will diminish home buyers purchasing power or at the very least force them to scale down on their dream home features and amenities. With higher interest rates, home buyers might have to choose a smaller home with less number of bedrooms or might not be able to live in their favorite neighborhood and send the kids to schools of their choice.
The graph below outlines the difference in the amount of monthly mortgage payments as rates increase: