Mortgage Interest Rates

Dated: 03/12/2019

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Will the mortgage interest rates go up or down in 2019?

Mortgage rates play a crucial role in deciding the condition of the real estate industry in different housing markets across the country. It has a huge impact on the buyer sentiment and affects the activities of the builders involved with constructions activities. Mortgage rates hovered around the 4% mark for a very long time, creating huge demand for homes. Things started to change from the second half of 2018 when these rates started to climb upwards. Many buyers and owners planning to sell have postponed their plans as they are waiting to see how interest rates move in 2019.

In the whole of 2018, mortgage rates steadily increased from a figure of 4% at the start of the year to nearly 4.75% by the end of December 2018. Interest rates were hiked 4 times by the Federal Reserve in 2018. There are signals from the central bank that there could be two more hikes in 2019 even though it had indicated 3 hikes in an earlier projection.

Experts are saying that mortgage rates will continue to rise in 2019 though at a slower pace than in 2018. According to Freddie Mac, mortgage rates could increase by another half percentage point in 2019. NAR has predicted an increase of 0.4% in mortgage rates. It is only Fannie Mae that believes mortgage rates could increase by just 0.1% in 2019. All three are big players in residential mortgage market and they are expected to have a clear idea of where mortgage rates are heading to in this year.

However, borrowers should keep in mind that these predictions talk about where mortgage rates could be positioned by the end of 2019. It is very much possible that there could be ups and downs in mortgage rates through the year.

If one goes by Mortgage Bankers Association, he finds that mortgage rates could be up by 0.2% by the end of 2019. MBA says that mortgage rates will be at 4.9% by the end of 2nd quarter of 2019 and it will reach 5% by the end of 3rd quarter. MBA believes fixed rate interest would stay at this level even at the end of the 4th quarter.

It is gradually become evident that mortgage rate would not increase by much in 2019. This should be a big relief for homebuyers planning to buy a home sometime in 2019

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Yvonne Long

I am a native central Floridian who prides herself on being a dynamic and empowering force in the community.  My enthusiasm for helping others grow, through cooperative efforts, have made me a formid....

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