2018 Looks Promising For Purchasing & Refinancing Homes


The Up-to-Date Mortgage Rates:
2018 Looks Promising For Purchasing & Refinancing Homes

by Amy Lignor

When the various real estate, mortgage and lending experts gave predictions in regards to mortgage rates before the New Year commenced, they stated quite simply that there would be no shortage of market-moving news come January (i.e., www.themortgagereports.com). As it had been with 2017, the consensus among forecasters was that mortgage rates would continue to rise in 2018; however, not by leaps and bounds.

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For example, when it comes to 30-year fixed rates, Freddie Mac and Kiplinger would come in at 4.4%; Mortgage Bankers Association at 4.6%; and National Association of Home Builders at 4.2%. This made all mortgage shoppers stop and ask the nation’s top authorities why rates would continue to rise. Simple answer: Because mortgage rates are currently too low when taking into consideration that the economy has made a recovery from over a decade ago when the housing downturn took its toll on many; the stock market is going well; unemployment rates have dropped; and, housing prices are on the rise.


When the market saw its last boom in the summer of 2007, 30-year rates rose to nearly 6.75% (i.e., Freddie Mac). Go back a bit further to the boom in 1999, and you will see rates hovered at 8%. The reason why rates are still half that amount, however, have had analysts speaking about everything from low inflation to the fact that even though unemployment is down, wages for the average worker aren’t rising enough to push them into spending more.


To bring you up to date and leave all those “predictions” behind, mortgage rates did rise this past week as the improving economy drove more people to apply for a mortgage. The benchmark 30-year fixed-rate mortgage rose 2 basis points, or 0.02 percent, to 4.20 percent, (i.e., Bankrate’s weekly survey of large lenders.) It’s the highest rate seen since mid-May and will likely climb further as the weeks and months progress. In other words, it is important to make sure now that you can afford a new home under a higher rate if you decide to wait.


Despite the slight increase in rates, applications to finance home purchases jumped 3 percent last week compared with only a week earlier, according to the Mortgage Bankers Association’s latest survey of lenders. People refinancing a mortgage also jumped during this small window of time.


As always, there is a slight catch. The improved economy is definitely the catalyst for more people buying homes, but the lack of affordable inventory keeps residential real estate “constrained,” according to the Federal Reserve in its latest Beige Book on the economy. Inventory is expected to gradually increase as homebuilders’ confidence in the housing market escalates.


In a recent press release from Robert Deitz, chief economist of the National Association of Home Builders, he stated that homebuilder confidence “has remained in the 70s, a sign that housing demand should continue to grow in 2018.” He went on to say that they also “expect the single-family housing market to make further gains this year.”


To keep current on all the figures and financial forecasts, as well as the latest reports on building inventory and how the market is increasing in various states, follow www.themortgagereports.com. In addition, www.bankrate.com is a prime source of information on mortgage lenders, offering a weekly national survey that can help all consumers who wish to purchase a home or refinance an existing mortgage.


Just remember: By keeping up with the latest data on the real estate and home financing markets, you will be able to make the right choices when it comes to purchasing or refinancing that perfect home.


Original Source:  BaretNewsWire.com



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