What the 'Fear Factor' Means for Your Home Purchase
NEW YORK ( BankingMyWay) -- Even as 30-year fixed mortgage rates rise, Americans want to buy new homes anyway -- and that's pushing up the value of homes across the country.
The 30-year fixed mortgage rate shot up more than 200 basis points last week, from 4.51% to 4.72%, according to the BankingMyWay Weekly Mortgage Rate Tracker. One-year, three-year and five-year adjustable-rate mortgages rose sharply as well.
But that's not stopping homebuyers from landing new properties.
That after the National Association of Realtors reports a big jump in existing-home sales, which rose 6.5% in July. All told, the rate of new home purchases was up 17.5% from July 2012 to July 2013.It's also the 25th straight month of rising monthly U.S. home sales, the NAR reports. BankingMyWay Mortgage Calculator, the total interest on a $200,000 loan at a rate of 4.5% would be $164,813.00 over 30 years. But a 5% rate would drive that total interest rate cost up more than $186,50 over the same period, adding an extra $22,000 or so to the purchase of the home. Smart buyers know this and are jumping in now before rates can go any higher, as the recent trend suggests.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV