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.
Most Popular... This Week • Last 30 Days • Ever
The schoolhouse, an historic mid-19th century landmark, has been reworked into twelve... read »
The change would allow for an 80-acre portion of DC's 272-acre Armed Forces Retiremen... read »
The Capitol Hill home has been listed for sale that has a number of serious security ... read »
The listing will hit the market on Wednesday, according to the Washington Business Jo... read »
Today, UrbanTurf looks at what we think will be the metrics that will determine the d... read »
With interest rates reaching their highest levels in 22 years, it is critically impor... read »
The Church of the Epiphany has filed plans with the city to demolish the rear portion... read »
Just before the holiday, UrbanTurf is taking its semi-annual look at the neighborhood... read »
Plans have been filed with DC's Historic Preservation Office to convert the building ... read »
An application filed with DC this week signals the end is nigh for a McDonald's locat... read »
With this weekend's DC houseboat tour a day away, UrbanTurf thought it only fitting t... read »
President Obama travels to Denver this morning to sign the stimulus bill that has bee... read »
In this week's installment of Ask An Agent, a reader wonders if there is a rule for h... read »
As The Wharf prepares to begin construction, DC's houseboat community heads to its ne... read »
In this week's installment of Ask An Agent, a reader asks a fairly common question th... read »
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. Start browsing below!
Intro guides for first-time home buyers
Awesome and unusual real estate from across the DC Metro