Bloomberg and Jamie Dimon, JPMorgan Chase CEO announced that mortgage rates should be 1% higher, and could be 2% higher soon. Mortgage rates follow the 10-year note closely. Today, the 10-year note is at 2.93%.

Rates are going up due to the rising economy and increasing job market. Those who buy today will benefit from a lower mortgage payment while their earnings rise.

For an average loan amount of $275K, borrowers will save $349/month, which is close to $4K/year. Buying a home today could save you $40K over the next decade.

Monthly payment savings example is based on a 30 year fixed Conventional mortgage loan of $275,000 with 3.5% down. Savings estimated is based on the current interest rate of 4.625% vs increased interest rate of 6.625%. Monthly payment comparison is used for information and educational purposes only and does not depict any actual loan.