What homebuyers need to know about rising rates

If you are thinking about buying a home, you’re probably aware that interest rates have been rising.

While the increases seem small – the 30-year fixed rate has averaged 4.46 percent, up from 3.99 percent in 2017 – those little increases add up. If mortgages increase by 1 percent, for example, it will cost typical homebuyers an additional $147 monthly – nearly $53,000 – over 30 years.

Rates are expected to continue going up, potentially rising to between 5.5 and 6 percent by 2020. Buying now may seem nerve-wracking, but it may ultimately yield massive savings over time.

– Paris Davis, Washington Federal