How 1% Can Cost You $50,000

Steve Jolly, owner of FastRealEstateMarketing.com and NashvilleRealEstateNow.com, shared tips on the recent rise in interest rates.  The recent rate hikes significantly affected purchasing power and the total cost of homeownership for millions of Americans.

In a recent press release to the public, the Federal Reserve (FED) announced that it will begin ending the purchase of mortgage-backed securities later this year. The FED has been purchasing up to $85 billion each month in Mortgage Backed Securities in an attempt to promote the ailing housing market.  While this was anticipated, the stock and bond markets instantly reacted to this news. Within a week, mortgage interest rates rose close to one percent.

A one percent increase seems like an insignificant number to most people.