Home | Newsletter | Advertise
loading...

5% in 2015 and 6% in 2016: Economist Predicts Rising Interest Rates

  • November 10th 2014

by Lark Turner

5% in 2015 and 6% in 2016: Economist Predicts Rising Interest Rates: Figure 1

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.

DC Real Estate Guides

Short guides to navigating the DC-area real estate market

We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Visit guides.urbanturf.com or start browsing below!

First-Timer Primers

Intro guides for first-time home buyers

Red Flags Revealed During a Home Inspection Top 5 Tax Breaks For Homeowners Tax Relief for DC Homeowners
Condo Fee Tutorial What is a Rent Back? 10 Ways To Tell If a Home Renovation is Well Done
Obtaining a Basic Business License For Your Rental What is an Adjustable Rate Mortgage? The Splitting the Rent Formula
How Much Cash Do You Need to Buy a House? Is This Condo Building Financially Healthy? Interest Rates and Mortgage Points
The Scoop on Mortgage Insurance

Unique Spaces

Awesome and unusual real estate from across the DC Metro

The Most Intriguing Loft in DC The R Street Firehouse DC’s One-Room House
Dupont Circle’s Old Frat House To Become Alley Home Best Transition From a Garage To a Home The Roundhouse
Tilden Gardens Restaurant-Turned-Home Hits Market Next Week Logan Circle’s Most Intriguing Garage Frank Lloyd Wright Goes Green in Kensington
Sears Bungalow Gets a Modern Makeover Old Town General Store Becomes Three-Level Home Making the Most of a Skinny House
A Studio 27 Renovation on Capitol Hill Once a Carriage House, Now a Home The Bank that Became a Home
From Pie to Hooch to Heroin to Home The Live-Aboards of Gangplank Marina A Treehouse with Rock Creek Park As A Backyard
Modern Tranquility in Sperryville Saddle Up For Stable Living Throwing a Curve at 550 Square Feet
A Modern Hilltop Retreat Tilden Street Restaurant Becomes Spacious Home Focus on Design: A Vastu Unit at 22 West
The DC Area’s First Net Zero Home A Yankee Goes Green DC’s First Carbon Neutral Home
Eco-Friendly Alley House Off H Street The Gym, The Stables and The Firehouse