Interest rate trends for 2019, a look into your future mortgage..
December 10, 2018
While all mortgage rates depend on buyer’s credit, down payment amount, type of loan, and more, they do reflect the overall market levels. At the beginning of 2018 mortgage interest rates averaged around 4.08%. Mortgage rates in 2018 have averaged around 4.38% totals, with the average 30 year loan around 4.93%. There is some split viewpoints about the forecasting of these rates as 25% of experts believe that rates will raise, 33% believe they will fall, and 45% believe they will stay relatively the same. If rates do continue to rise by the end of 2018, they are expected to rise to about 4.8-5%.
So, what does this mean for 2019? Forecasting analysis suggests that mortgage interest rates in 2019 will continue to rise as it did in 2018. At this point in time, it is forecasted that by December, 2019 rates will be as high as 5.57%, however, as rates are based on market levels; this is speculative and could change. There could be many reasons for spikes in rates, as the interest rate percentage is highly volatile and likely to change often. The Federal Reserve will occasionally reduce its Treasury holdings to curb inflation; this can put stress on rates and cause them to increase. These mortgage rate increases affect homebuyers wallets significantly as a .05% can dramatically increase monthly payments; there is speculation that the renting market will grow in 2019 because of this.
While all mortgage rates depend on buyer’s credit, down payment amount, type of loan, and more, they do reflect the overall market levels. At the beginning of 2018 mortgage interest rates averaged around 4.08%. Mortgage rates in 2018 have averaged around 4.38% totals, with the average 30 year loan around 4.93%. There is some split viewpoints about the forecasting of these rates as 25% of experts believe that rates will raise, 33% believe they will fall, and 45% believe they will stay relatively the same.
