The cost of homeownership depends on the price and condition of the home and the interest rate you pay for your mortgage loan. A small increase or decrease of .25% (quarter percent) on you rate could mean the difference between saving or paying thousands of dollars every year and a lot more over the life of the loan.
Mortgage rates are currently still at all-time lows and have been for the last several years. However, they are expected to go higher in 2016 and into 2017. Fannie Mae has predicted rates to be above 4% in 2016 and climb to 4.2% in 2017. Freddie Mac and the Mortgage Bankers Association (MBA) have similar forecasts for 2016, However, both agencies have said that rates may go as high as 5.1% in 2017.
Making the decision to buy this year or next year is not something you should take lightly. Timing is everything when it comes to investments. Here is a simple infograph that details how predicted rates can make the cost of owning a home much more next year than this year.