San Diego Mortgage Rates to Spike in 2013?

Rising San Diego Mortgage Rates
Rising San Diego Mortgage Rates
by Roberta Murphy

The San Diego real estate market is red hot, and we can’t help but wonder if increased mortgage rates might cool things down a bit?

That would be great news for investors, but a struggle for some home buyers. It seems the Mortgage Bankers Association, Fannie Mae and our own National Association of Realtors are forecasting 30-year mortgage rates to meet or beat 4% by the end of 2013.

What difference would that make to a San Diego home buyer? The folks at the KCM Blog have created a terrific visual, which you see at left and which shows the added cost a rate increase would have on various mortgage amounts.

The rise might seem like a steep one, but I’m a real estate veteran who can recall mortgage rates that exceeded 18%–or even more.  And it was markets like that that gave rise to creative financing and ways to buy and sell real estate.

We’re a long way from those rates, though!