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Mortgage rates are expected to rise via the Federal Reserve up to 3 or 4 times in 2018. This can mean your mortgage will be much more expensive by the end of 2018 than the beginning. The Mortgage Bankers Association, the National Association of Realtors, and Realtor.com conclude that this could affect the 30 year mortgage interest rates to a perceived max of 5 %. The 10 year rate will be expected to stay below 3%.

            The Treasury Yield influences the national mortgage rate and MBA Chief Economist Mike Fratantoni says, “The Federal Reserve has begun reducing its holdings of Treasury securities and mortgage backed securities, and this will put additional, modest upward pressure on mortgage rates.”  He predicts that rates will continue to increase to up to 5.3 % in 2020.

            Many are becoming weary of purchasing property in this market but some are utilizing the increase to their advantage by shopping for a mortgage before rates rise past speculation.

            But what about those people who are already homeowners? Most lenders would advise refinancing if it can lower the homeowners rate by half of one percent, which is what the rates are speculated to increase to. Danielle Hale, who is the chief economist for Realtor.com says,” The refinance market has more flexibility to time the market. For most of them, if it still makes sense to refinance, they should go for it because the long- term forecast suggests rates will rise.” The time to buy is NOW! Contact your realtor for more info!