Where Are Interest Rates Headed in 2016?



Today we are going to talk a little bit about interest rate projections for 2016, and where the market is headed. At the end of January 2016, the mortgage interest rates are lower than they were in December. Yes, we did have a federal funds rate increase, but it didn’t have very much of an impact on rates overall. Economic turmoil and the plunging stock market has caused rates to remain low.

If you are a buyer, now is a great time to make your move. If you’re just thinking about buying or waiting to buy, it may cost you. If you were to go out today and get a 30-year fixed rate mortgage on a $350,000 home, you would be looking at a mortgage payment of about $1,630 per month.


If rates go up just 1%, that same 30-year mortgage on that same $350,000 home would now cost you $1,836 per month. That’s a $200 per month increase, and you’ll end up paying $2,000 extra every year on the mortgage, and $72,000 extra over the course of the loan.

If you’ve been on the fence about buying, now is a great time to take the leap off and get a deal done. Prices and rates are low right now, but we’re not sure how much longer that will last. If you have any questions for us, we would be glad to answer them. Just give us a call or send us an email. We look forward to speaking with you soon!

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