Impact of Increasing
INTEREST RATES
"One thing seems certain: we are not likely to see average 30-year fixed mortgage rates return to the historic lows experienced in 2012."
Freddie Mac
Freddie Mac Projected Rates April 2014 – 2015 4Q
1/2013
4/2014
Date
Mortgage
Interest Rate*
P&I**
Today
$250,000
4.41
$1,253.38
End of 2015
$270,000
5.7
$1,567.08
Difference in Monthly Payment
$313.70
*Average Commitment Rate per Freddie Mac **Principal and Interest Payment
Date
Mortgage
Interest Rate*
Today
$250,000
4.41
$1,253.38
End of 2015
$270,000
5.7
$1,567.08
Difference in Monthly Payment
Monthly
Annually
$313.70 $3,764.40
P&I**
$313.70
Over 30 Years
$112,932
Historic Mortgage Rates by Decade Decade 1970s 1980s 1990s 2000s 2014 YTD
Average Rate 8.86% 12.7% 8.12% 6.29% 4.36%
Payment $1,589 $2,166 $1,484 $1,237 $997
The average 30-year fixed mortgage rates and the approximate payment for a $200,000 mortgage. Payments are principal & interest only, based on a $200,000 fully amortizing mortgage. All terms are assumed to be 30 years.
Freddie Mac 3/2014
RATE
Buyer’s Purchasing Power 6.00 $
1,199
$
1,169
$
1,139
$
1,109
$
1,079
5.75 $
1,167
$
1,138
$
1,109
$
1,080
$
1,050
5.50 $
1,136
$
1,107
$
1,079
$
1,050
$
1,022
5.25 $
1,104
$
1,077
$
1,049
$
1,022
$
994
5.00 $
1,074
$
1,047
$
1,020
$
993
$
966
4.75 $
1,043
$
1,017
$
991
$
965
$
939
4.50 $
1,013
$
988
$
963
$
937
$
912
$ 200,000
$ 195,000 -2.5%
$ 190,000 -5%
$ 185,000 -7.5%
$ 180,000 -10%
Principal and Interest Payments rounded to the nearest dollar amount.
RATE
Buyer’s Purchasing Power 6.00 $
1,199
$
1,169
$
1,139
$
1,109
$
1,079
5.75 $
1,167
$
1,138
$
1,109
$
1,080
$
1,050
5.50 $
1,136
$
1,107
$
1,079
$
1,050
$
1,022
5.25 $
1,104
$
1,077
$
1,049
$
1,022
$
994
5.00 $
1,074
$
1,047
$
1,020
$
993
$
966
4.75 $
1,043
$
1,017
$
991
$
965
$
939
4.50 $
1,013
$
988
$
963
$
937
$
912
$ 200,000
$ 195,000 -2.5%
$ 190,000 -5%
$ 185,000 -7.5%
$ 180,000 -10%
Principal and Interest Payments rounded to the nearest dollar amount.
RATE
Buyer’s Purchasing Power 6.00 $
2,398
$
2,338
$
2,278
$
2,218
$
2,158
5.75 $
2,334
$
2,276
$
2,218
$
2,160
$
2,100
5.50 $
2,272
$
2,214
$
2,158
$
2,100
$
2,044
5.25 $
2,208
$
2,154
$
2,098
$
2,044
$
1,988
5.00 $
2,148
$
2,094
$
2,040
$
1,986
$
1,932
4.75 $
2,086
$
2,034
$
1,982
$
1,930
$
1,878
4.50 $
2,026
$
1,976
$
1,926
$
1,874
$
1,824
$ 400,000
$ 390,000 -2.5%
$ 380,000 -5%
$ 370,000 -7.5%
$ 360,000 -10%
Principal and Interest Payments rounded to the nearest dollar amount.
RATE
Buyer’s Purchasing Power 6.00 $
3,597
$
3,507
$
3,417
$
3,328
$
3,237
5.75 $
3,501
$
3,414
$
3,326
$
3,239
$
3,151
5.50 $
3,407
$
3,322
$
3,236
$
3,151
$
3,066
5.25 $
3,313
$
3,230
$
3,148
$
3,065
$
2,982
5.00 $
3,221
$
3,140
$
3,060
$
2,979
$
2,899
4.75 $
3,130
$
3,052
$
2,973
$
2,895
$
2,817
4.50 $
3,040
$
2,964
$
2,888
$
2,812
$
2,736
$ 600,000
$ 585,000 -2.5%
$ 570,000 -5%
$ 555,000 -7.5%
$ 540,000 -10%
Principal and Interest Payments rounded to the nearest dollar amount.
RATE
Buyer’s Purchasing Power 6.00 $
4,796
$
4,676
$
4,557
$
4,437
$
4,317
5.75 $
4,669
$
4,552
$
4,435
$
4,318
$
4,201
5.50 $
4,542
$
4,429
$
4,315
$
4,202
$
4,088
5.25 $
4,418
$
4,307
$
4,197
$
4,086
$
3,976
5.00 $
4,295
$
4,187
$
4,080
$
3,972
$
3,865
4.75 $
4,173
$
4,069
$
3,965
$
3,860
$
3,756
4.50 $
4,053
$
3,952
$
3,851
$
3,749
$
3,648
$ 800,000
$ 780,000 -2.5%
$ 760,000 -5%
$ 740,000 -7.5%
$ 720,000 -10%
Principal and Interest Payments rounded to the nearest dollar amount.
RATE
Buyer’s Purchasing Power 6.00 $
5,996
$
5,846
$
5,696
$
5,546
$
5,396
5.75 $
5,836
$
5,690
$
5,544
$
5,398
$
5,252
5.50 $
5,678
$
5,536
$
5,394
$
5,252
$
5,110
5.25 $
5,522
$
5,384
$
5,246
$
5,108
$
4,970
5.00 $
5,368
$
5,234
$
5,100
$
4,966
$
4,831
4.75 $
5,216
$
5,086
$
4,956
$
4,825
$
4,695
4.50 $
5,067
$
4,940
$
4,814
$
4,687
$
4,560
$ 1,000,000
$ 975,000 -2.5%
$ 950,000 -5%
$ 925,000 -7.5%
$ 900,000 -10%
Principal and Interest Payments rounded to the nearest dollar amount.