Mortgage rates are still historically low, but crossing over to the four-percent range raises worries to potential homebuyers. But, should they be worried? How much can this rise of mortgage rates change their monthly payment? How does this change monthly payments?
We calculated the monthly payment for Yavapai County based on the mortgage rate prevalent a couple of months ago (3.5 percent), the rate as of early January (4.2 percent) and a higher rate likely to be seen within the next two years (5.0 percent).
In Yavapai County the Avg Home Value is $231,605 at 3.5% Payment is $931 at 4.2% Payment is $1,109 at 5% Payment is $1,119.
National Association of Realtors expects that the 30 year fixed-rate will increase to 4.4 percent in 2017 and 4.8 percent in 2018 while home prices are expected to rise 3.9 and 3.2 percent, accordingly. Rising prices, in addition to rising mortgage rates, will push the monthly cost of housing up even higher for new homebuyers.