What do mortgage RATES have to do with “ME”?

What do mortgage RATES have to do with “ME”?

Forget the professionals, asks any homeowner how important it is to get a good interest rate, and they will be delighted to school you.  In 2007 the median interest rate was 6.4% on a 30 year fix. While that seem like a deal back in the day, let's do the math. Presently you can find the median interest rate around 4% on the same 30 year fix rate.  So, a home that cost $200.000 in 2007 at 6.4% interest cost the buyer $1250(not including taxes and insurance) a month. However, today a home that cost $200.000 at 4% interest will cost the buyer $954.00(not including taxes and insurance) a month

Therefore if we took $1,250.00 and subtract $954.00 it would = $296.00 So, what do mortgage rated have to do with you? It means money saved. Lower prices and lower rates, is the recipe to buy.

“Mortgage rates are rising. The rate on a 30-year fixed mortgage has increased to 4.07%, up from 3.85% on March 12. Fueling the increase: a jump in Treasury yields driven by signs the economy is picking up as well as worries the Federal Reserve won't take further steps to lower interest rates. While rising, rates remain below the 4.79% level from a year ago.”- Wall Street Journal

 http://blogs.wsj.com/economics/2012/03/22/vital-signs-climbing-mortgage-rates/