Mortgage rates will rise notably over the next couple of years, according to Lawrence Yun, the chief economist for the National Association of Realtors.
Yun made the comments at a real estate convention covered by The Dallas Morning News on Friday.
“I anticipate that mortgage rates will rise to 5 percent next year and to 6 percent in two years,” he told the convention. Mortgage rates for well-qualified buyers are currently about 4 percent.
Looking at just the payments on principal and interest, the difference between 4 and 5 percent on a 30-year fixed-rate mortgage for a $500,000 house with a 20 percent down payment is about $237 a month. At 6 percent, the difference jumps to $488 a month.
Yun previously predicted that rates would rise to 5.4 percent by the end of 2014. But he and other economists were proven wrong thanks to a less sunny economic outlook and a supply and demand problem.
This article originally published at https://dc.urbanturf.com/articles/blog/5_in_2015_and_6_in_2016_economist_predicts_rising_interest_rates/9207.
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