Freddie mac interest rate predictions for 2017 mac#
“One additional mortgage quote could save you $1,500 over the life of your loan,” Freddie Mac says. Your decision will affect your monthly mortgage payments for years. Get as many quotes as you can and do your research As when making other major purchases, shop around. Housing agency Freddie Mac urges new homeowners to shop around before choosing a mortgage. If you’re house-hunting now, don’t pay more for your mortgage than you absolutely have to. When adjusted for inflation, house prices have increased 33 percent in seven years. According to the National Association of Realtors, the average price for a home is now $264,800, up by almost $100,000 from 2011. Housing prices have soared over the last seven years. If your rate is more than current mortgage rates, consider refinancing your existing mortgage to one with a lower interest rate. You’ll want to get the best current mortgage rate before it gets too expensive to handle. If you own a home and haven’t yet locked in your interest rate, now is the time to do so. What to do about mortgage rate increases If you’re a homeowner If anything, they’ll likely continue rising throughout the rest of the year. They are not expected to drop anytime soon. As of August 1, 2018, mortgage rates are hovering between 4.5 percent and 5 percent. What are current mortgage rates?Ĭurrent rates have already surpassed mortgage rate predictions major housing agencies set at the end of 2017. By gradually increasing interest rates, the Fed can keep the economy growing at a steady, stable pace. The Fed wants to keep inflation stable so that it doesn’t spike suddenly, triggering a market panic that can lead to a crash or a recession. Raising mortgage interest rates keeps investors interested in mortgage bonds when the economy is booming. This causes investors to seek higher returns for their investments.
When the economy is thriving, inflation increases. Why a healthy economy means a mortgage rate increase When homeowners stay put, it can create a tighter housing market and higher home costs. Cash-out refinances, in which the homeowner takes out a bigger mortgage and pockets the difference in cash, will be especially popular. It now makes more sense for them to tap into their home’s equity to fund renovations on their homes instead of going through the hassle and costs of a move. This means most homeowners are now sitting on newfound wealth.
Hiring is up, and most corporate budgets are able to accommodate salary increases.
With the unemployment rate at a record low and the recent tax cuts keeping the economy strong, business is booming across the country. The Fed is expected to raise interest rates again at their meetings in September and December. Here’s what experts anticipate for the remainder of 2018: Mortgage rate predictions for the rest of the year So many questions! And we’ve got answers! Read on for what you need to know about rising interest rates and what it all means for you. Prospective homeowners may ask: Is it a good time to buy a house? Should I choose an ARM (adjustable-rate mortgage) or a fixed-rate mortgage? Current homeowners may wonder whether they need to take any action. And, that might not be the best news for current and hopeful homeowners who may be concerned about a mortgage rate increase. While this might be good news for the economy, all these indicators point to rising interest rates. unemployment rate dropped to just 3.8 percent in May, tying with April 2000 for the lowest rate since 1969. The Fed pronounced the economy to be improving at a “solid rate” and claimed that inflation rates are close to their target goal of 2 percent. Optimistic feelings about the general state of the economy prompted the rate increase. This increase marks the second time the Fed increased interest rates in 2018, and experts expect another two increases this year. On June 13, the Federal Reserve officially raised the federal funds target rate by.
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