The interest rate you pay on your mortgage loan has a big impact on your monthly payment as well as the amount you pay over the lifetime of your loan. That’s why it’s so important to know where interest rates are headed when you’re looking forward to a home purchase.

Last week Freddie Mac released its U.S. Economic and Housing Market Outlook for April 2015. We’ve put together this chart based on Freddie Mac’s predictions so you can get an idea of where interest rates will be throughout the rest of the year and into 2016.

More highlights from the report:

The first quarter was slow but big job gains and improving house markets and bring optimism for the second quarter. 5.6 million home sales projection for 2015 is unchanged
Low inventory will be an issue for several years.
Rates are forecasted to drift slightly higher over the next 6 months. Any expected volatility however will occur after the spring home buying season.
Economic growth forecast for 2015 has been revised down from 2.8 to 2.6%.
Housing starts forecast is at 1.15 million for 2015, slightly lower than last month.
4% expected increase in mortgage originations, a total of $1.3 trillion in 2015.
41% expected boost in the refinance volume in 2015.
However, by the end of the year long-term interest rates should only increase modestly, ending the year at about 4.3 percent for the 30-year fixed rate mortgage.

What does this mean for your mortgage payment?

Even a small raise in interest rates, a half of a percent increase, can increase your monthly mortgage payment. Read more about the cost of waiting to find out just how much a raise interest rates could cost you.

So the sooner you start looking, the sooner you’ll find the home you’re looking for and the interest rate you want. Chat with a First Team agent and get one step closer to your new home.

Email us at clientservices@firstteam.com

Call us at 888-870-1142