Your monthly mortgage payments are directly affected by the interest rate that you are paying on your home - and as you may expect, the higher your rate, the higher your payment will be.

Keeping an eye on the trajectory of mortgage rates can help you decide when your optimum time to buy a home (and thus lock in a mortgage rate) will be. Here is what we can expect, according to the KCM blog.

30-year mortgage rates are about to increase

Our 30-year mortgage rates are currently around 4.1%. According to Kiplinger, however, rates are expected to near 4.4% by the end of this year. By the end of 2015, they should continue to increase to around 5.1%.

While even 5.1% is still low in terms of historical standards, clearly 4.1% is rate that is much preferred. Waiting, it appears, will not put the market any more in your favor.

Monthly payment increases could increase up to $700

According to research released by Zillow, 1 percentage point rise in mortgage rates is more of an impact than many homeowners realize, with dramatic differences throughout 35 metro area:

In the San Jose/Silicon Valley area, for example, potential buyers should expect to see a monthly payment increase of more than $700 if they waited a year to buy the same home they were considering today. By contrast, in St. Louis, the difference is only $65 per month.

The bottom line?

If you are contemplating buying a home now or waiting until later, know that mortgage rates are expected to rise within the course of year, and your monthly mortgage payments on your new home will rise right along with it. The time to act on our currently low mortgage payments is now.

Questions? Need guidance on your specific situation? Don't hesitate to send us an email or give us a call! We'll be happy to help.