Why You Shouldn't Worry About Rising Mortgage Rates
Monday, February 20, 2017
While we saw mortgage rates at near historic lows in 2016, the year ended with rates at their highest levels since 2014. Mortgage rates began rising after the 2016 presidential election, and experts are predicting that they will continue to rise (at a slower pace) in 2017. But don’t panic. In fact, rates are still very low and now is a great time to refinance or purchase before rates rise again.
What You Need to Know about Mortgages in 2017
While mortgage rates are expected to increase this year, they should do so at a slower rate. According to the National Association of Realtors, the rate for a 30-year fixed mortgage will be in the range of 4.6 percent by year end. This prediction still keeps us under 5 percent, which has been the norm for the last decade. But if we look back to the early 1990s, mortgage rates were anywhere between 7 to 10 percent.
What Does this Mean for Home Buyers in 2017?
While home prices are also expected to rise in 2017, it is not expected that either of these rising rates will have a huge change on the housing market. It is important to note that the more expensive and competitive housing markets, like in San Francisco and Manhattan, may feel more of an impact of these rising rates compared to the rest of the country. But for the most part, the predicted rates will be affordable for the majority of the U.S. by historical standards.
Mortgage Trends in 2017
There are many different things that directly affect mortgage rates. The Federal Reserve, bond market and global uncertainty all have a hand in rising or falling mortgage rates. For example, after the Brexit vote in June, rates on a 30-year fixed rate mortgage dropped to 3.48%, which was the lowest level since May 2013.
Even with the recent interest rate changes, there is still room to refinance and save monthly. If you are in the purchase market, moving quickly could save you against any increase on the horizon. Additionally, as the market shifts, you can expect to see other loan programs gaining popularity, such as adjustable rate mortgages.
Apply for a Mortgage Today
Are you planning on moving in 2017? It is advised to speak with a trusted expert to figure out which loan fits your financial situation. Here at Home Point Financial, we pride ourselves on being experts in the industry. No matter your current situation, we will provide the best course of action based on your needs. For more information, please contact us today.