Are you looking to buy a home? Then you might be worried about interest rates, but how much do they really matter?
With the recently passed tax cuts adding to deficit fears, the Fed is expected to raise short term interest rates. While this means an anticipated rise in the 30-year fixed mortgage rate from from the current rate of 4.33% to 4.6% by the end of 2018, I thought it might be of interest to consider the bigger picture. While rising interest rates are of course a concern to the average homebuyer, it is interesting see so starkly that this anticipated rise still leaves mortgage rates at historically low levels. For a fuller discussion of the dynamics at play in the mortgage market, this article in Kiplinger offers a good overview.