At the end of June, mortgage rates for a 30-year fixed-rate mortgage jumped to 4.5 percent, up from 3.9 percent on June 1 — and a notable jump from the historically low 3.35 percent monthly average rate toward the end of 2012. However, while higher rates do mean an increase in monthly mortgage payments, experts are urging potential home buyers not to resign themselves to renting for the next few years just yet — it’s still a good time to buy a home.
These moderate increases in payments may still be manageable, particularly if buyers look at less expensive properties, or negotiate a lower price.
For example, the difference in monthly payments for a $200,000 home at 3.9 percent and one at 4.5 percent is just $70.03. If budgeted correctly, this could be a manageable expense.[fancy_link color=”black” link=”http://www.realtor.com/news/what-will-waiting-to-buy-a-home-cost-you/”]Read More[/fancy_link]