This is a YouTube video titled "Interest Rates Going Up - What Does it Mean?" containing a monologue or presentation from October 20, 2021, discussing projections from the Mortgage Bankers Association and Freddie Mac about interest rate increases and their impact on mortgage payments and home buying costs.
Big announcements this week, Mortgage Bankers association and Freddie Mac came out with their projections of what they think interest rates will be next year. Let's dive into that. We use an example of a $300,000 loan amount and 3% interest rate. Here's your principal and interest payment. Mortgage Bankers example. It goes up over 100 bucks more per month. And at Freddie Mac's right, it goes up over 150 bucks more per month. Now it's diving that one step further. If interest rates were the same, this payment's like you're buying a $27,000 more expensive house. And this payment's like you're buying a $40,000 more expensive house. That's how much buyers are losing if they wait till next year. Along with home prices still increasing at a record pace.
