It’s an important distinction. Cost of a home is just as important, or perhaps more, than the price of a home. Now, obviously, price is part of the cost equation. However, the other piece, assuming you are not an all cash buyer, is the mortgage rate. The mortgage rate to finance a purchase can have a dramatic impact on the overall cost. Recently, there are more people talking about the possibility that mortgage rates could begin to increase.
HSH.com studies trends in mortgage rates. They explain:
“A better economic climate almost always brings higher rates, and a
lessening of the troubles in Europe from massive central bank assistance adds to
the movement of money from safe havens to more risky assets, driving rates
upward.”
Dan Green of The Daily Market Reports recently stated:
“The Fed sees growth coming faster than originally expected. There’s
suddenly less chance that the Federal Reserve will intervene to help keep
mortgage rates low. Absent Fed intervention, mortgage rates are apt to rise and
Wall Street is now betting that the Fed has bowed out. With no stimulus,
mortgage rates rise.”
Lawrence Yun, chief economist for the National Assoc of Realtors,
recently wrote:
“Mortgage rates will be starting to rise. From the 3.9 to 4.0 percent
average rate in the past five months on a 30-year fixed mortgage, the new rates
will soon be in the range of 4.3 to 4.6 percent.”Courtesy of KCM Blog