Less often than a blue moon.
While current rates are still well below the past 40 year averages, they are expected to increase a full percentage point in the next 6-9 months. Why do we care so much about a single percentage or less? Because it makes a huge difference in your monthly payments and in what you can ultimately afford to buy. When I bought my first home in the 80s, the average mortgage rate was 12.7% and I paid more than that. Ugh.
A $200,000 house payment ( on a 30 year note) costs you:
- $877 a month if you got the low 3.31% rate in 2012.
- $3,177 a month if you paid the high 18.63% rate back in 1981.
By the way, tonight is a Blue Moon so I couldn't resist making the reference. The definition of a Blue Moon is a full moon that occurs twice in one month. Take advantage of today's low rates to make your home purchase more affordable.