Mortgage Rates to slowly increase

The Mortgage Bankers Association (MBA) economists have revised their mortgage interest rates projections and are now predicting a slower than anticipated increase. The interest rate for 30-year mortgages are still projected to be in the high 6% range by fourth quarter of 2012. The revision is in how quickly the 30-year mortgage interest rates will rise from their current levels of high 4% range to the high 6% range.

In their June 11th forecast, the MBA economists predict the 30-year mortgage rates will gradually rise to 5.4% during the fourth quarter of this year, climb to 6% by fourth quarter of 2011, and reach 6.6% by fourth quarter of 2012.

If you are considering purchasing a Spring Texas home, a gradual increase in mortgage interest rates is good news. As it gives you time to find the right house without feeling you have to quickly make a decision before the interest rates skyrocket.

Mortgage interest rates have a significant impact on how much Spring Texas home you can afford and how much interest you will be paying over the long run. The table below identifies how much that 1% jump in mortgage interest rates will cost you.