Last May 22nd the interest rate on a 30 year fixed mortgage was 4.05%; now a year later we are facing 4.61% interest rates. With this over half a percent increase in interest rates there is substantial increases in not only what your mortgage payment will be but also the minimum qualifying income necessary to obtain the property. Look at the graphic below to see just how the rising interests rate will be impacting you if you are planning on buying.
So what do all of these numbers mean to you the homebuyer? Well, with rising interest rates it simply means that you will not be able to afford as much house as you would have been a year ago due to your debt-to-income ratio and you will be paying more in your mortgage payments. You may be asking yourself if rates are going to come back down or are they going to continue to rise? Based off of what experts are predicting, rates are only going to be increasing throughout 2018 and into 2019.
If you are interested in seeing what 30 year fixed mortgage interest rates are doing; follow the link to Y Charts.