Experts expect interest rates to jump two or three more times this year

CHARLOTTE, NC — Not only is it a home sellers’ market right now, interest rates just went up a quarter percent last month.  And, experts are predicting them to go up again, two or even three more times by the end of the year.

Right now, the average rate for a 30-year fixed rate mortgage is just under 4.6%.  If that were to go up just .5%, then a payment on a $200,000 loan would jump $60 per month.

"Even a quarter of a percent can make such a difference," real estate agent Elizabeth Connor said.  She told Action 9 she's seen people go from being able to afford a certain home to not being able to buy it because of even a slight interest rate increase.  "I have seen that happen," she said.  "And that's a devastating situation for anyone to be in."

As a homebuyer, Liz Hargiss knows that can be stressful.  She was living in Greensboro for years.  She moved to Charlotte about a year ago and didn't want to rush into a house.  But, now, she's ready.  Fortunately, she locked in a rate.  A little higher than she was hoping for.  But it may end up looking like a steal.

You can compare interest rates lenders are offering on sites like Bankrate.com, Lending Tree, and Zillow.  The lenders are all legitimate, but still read reviews and research which company is right for you.

Connor says lock in a rate as soon as possible to avoid any surprises.

Bankrate.com Chief Financial Analyst Greg McBride told Action 9, if you have an adjustable rate mortgage and it's going to change in the next year or two, refinance now.  "Right now, you can lock in a fixed rate mortgage below 4.5%.  So, you get a fixed rate below what your adjustable rate is otherwise going to jump to and you insulate yourself from any future increases down the road," he said.

RESOURCES:

Zillow: Top 5 ways to find a mortgage lender

Zillow: Questions to ask a mortgage lender

Zillow: How to choose a mortgage lender

Cox Media Group