There’s an Interest Rate for that….
It seems like there is an interest rate for every item we buy today, if there isn’t an interest rate then a commission is paid out. This can be favorable if you are the one who is receiving the money, but let’s get back to reality, unless you have invested in bonds or own a bank, the majority of us are on the dispersing end. With large purchases especially, interest can be the deal breaker on a house, a new car or another large investment. Mortgage rates can make the process of trying to purchase a house even more stressful with the numbers constantly fluctuating.
On December 1st of 2017 the 30-year fixed rate was 3.87% and the 15-year fixed rate was 3.29%. This time last year a 30-year fixed rate was 4.35% and a 15- year fixed rate was 3.60%, seeing these rates make the currents numbers much easier to say yes too! As we enter the new year what is in store for mortgage rates? Unfortunately, we will see a rise again. Some mortgage companies saying it could reach as high as 5% next year and 6 % into 2019, those rates seem through the roof! So, let’s hope these projections are about as accurate as the weather forecasts are. Freddie Mac predicts a more realistic rate we could see of 4.4% for a 30-year mortgage in 2018. Along with rising mortgage rates, total home sales are projected to rise as well.
Freddie Mac Home. Looking Ahead to 2018 – Freddie Mac. Retrieved December 21, 2017, from http://www.freddiemac.com/research/outlook/20170921_looking_ahead_to_2018.html
Nasdaq Stock Market | Stock Quotes & Stock Exchange News. Mortgage Rates Monday: Mixed, With a Rise Forecast for 2018 – Nasdaq.com. Retrieved December 21, 2017, from http://www.nasdaq.com/article/mortgage-rates-monday-mixed-with-a-rise-forecast-for-2018-cm872593
Mortgage News Daily – Mortgage And Real Estate News. December 2016 Mortgage Rates. Retrieved December 21, 2017, from http://www.mortgagenewsdaily.com/mortgage_rates/charts.asp?Y=2016&M=12