After months of record-low mortgage interest rates, Cedar Rapids and Marion homebuyers are seeing slow but sure increases, and the trend is likely to continue in the coming months. Starting at just above 3% at the beginning of the year, we’re now at 3.9% as we near its midpoint.

Several economists and real estate professional organizations are weighing in on just how far, and how quickly, the rates are likely to climb. The National Association of Realtors projects that 30-year fixed rates will reach 4.6% by the second quarter of 2014. The Mortgage Bankers Association predicts 4.3% for the same time frame, and Fannie Mae sees 4.5%.

So, what does this mean for homebuyers? The monthly principle and interest payment (P&I) on a $200,000 mortgage increases $70.03 when rates go from 3.9 to 4.5%. This means that purchasing a property at the 3.9% level can save you nearly $850 in the first year alone. Amortize that over the life of the loan, and you’re looking at significant savings in the long run.

Believe it or not, this is all good news for housing. The slow down in the rate of foreclosure sales and the increase in overall sales show that the market is in fact recovering. We’ve been at the bottom of the mortgage interest rate curve, and now we’re heading back up the other side. If you’re considering buying this year, now is the time to do it.

The inventory of homes available for sale is increasing, and there are some fantastic properties here in the region just waiting for a buyer. There’s not been a better time in recent memory to reach for your property ownership goals, and I can help you do just that. Give me a call, stop by the office, or browse the featured properties on my website. Let’s get you into your dream home!

 

Heather Morris
Skogman Realty
341 8th Avenue
Marion, IA 52302
(319) 350-7653 (SOLD)

 

http://www.heathermorrisrealtor.com/