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5% in 2015 and 6% in 2016: Economist Predicts Rising Interest Rates
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.
See other articles related to: lawrence yun, nar, national association of realtors
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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