Experts predict mortgage rates to be around 5% by the end of this year, which sound high but is still historically low.
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Where are mortgage rates heading in our real estate market? They’re going up. There are too many positive economic influencers in the stock market, the bond market, and the Federal Reserve rates to not push mortgage rates up.
How far up, though?
We don’t expect them to skyrocket. Industry professionals I’m speaking with expect them to be near 5% by the end of 2018. I know that sounds high, but, historically speaking, that’s still very low. As you may recall, back in the early 1980s, interest rates were around 18%.
I know we all got used to getting 3% to 3.5% rates during the recession as we stabilized into today’s market, but I predict that within two years, we’ll see rates around 5.5% to 6%. That’s near what they were before the economic downturn, so plan accordingly.
We don’t know how this will impact the housing market just yet, but remember—a 1% increase means that the economy and the market in general are both healthier than they were before.
If you have any more questions about mortgage rates or you’re thinking of buying or selling a home in our market, don’t hesitate to reach out to me. I’d love to help you.