Interest Rates Heading Higher

(From Business Insider)

Notice the similarity to the 30-year mortgage interest rates:

Here's a graph with both:

This is a reasonable predictor of mortgage interest rates.

And despite the somewhat hysterical headline and the underlying story which is discussing stock/equity markets, this trend will have effects on the overall economy.

Perspective on Interest Rate Increases

Although the median price used in this example is too low for much of the Bay area real estate market, it still makes the point that even a full point increase on interest rates from 4% to 5% only increases the monthly mortgage payment by $262.