What's Happening to Our Interest Rates?

Dated: January 14 2019

Views: 160

Is the Recent Dip in Interest Rates Here to Stay?

Interest rates for a 30-year fixed rate mortgage climbed consistently throughout 2018 until the middle of November. After that point, rates returned to levels that we saw in August to close out the year at 4.55%, according to Freddie Mac’s Primary Mortgage Market Survey.

After the first week of 2019, rates have continued their downward trend. As Freddie Mac’s Chief Economist Sam Khater notes, this is great news for homebuyers. He states,

“Mortgage rates declined to start the new year with the 30-year fixed-rate mortgage dipping to 4.51 percent. Low mortgage rates combined with decelerating home price growth should get prospective homebuyers excited to buy.”

In some areas of the country, the combination of rising interest rates and rising home prices had made some first-time buyers push pause on their home searches. But with more inventory coming to market, continued price growth, and interest rates slowing, this is a great time to get back in the market!

Will This Trend Continue?

According to the latest forecasts from Fannie Maethe Mortgage Bankers Associationand theNational Association of Realtors, mortgage rates will increase over the course of 2019, but not at the same pace they did in 2018. You can see the forecasts broken down by quarter below.

Is the Recent Dip in Interest Rates Here to Stay? | Simplifying The Market

Bottom Line

Even a small increase (or decrease) in interest rates can impact your monthly housing cost. If buying a home in 2019 is on your short list of goals to achieve, let’s get together to find out if you are able to today.

Blog author image

Tom Wombacher

Real estate has been an important part of my life for decades. After graduating college I went to work for a local Twin Cities homebuilder where I worked as a framer on a small crew. It was this exper....

Latest Blog Posts

What's Happening to Our Interest Rates?

Is the Recent Dip in Interest Rates Here to Stay? Wednesday January 9th, 2019  First Time Home Buyers, For Buyers, Housing Market Updates,Interest RatesInterest rates for a

Read More

When is the Best Time to List Your House?

The Best Time to List Your House? TODAY! Thursday January 10th, 2019  For Sellers, Move-Up BuyersYou may have heard that the housing market is softening. There is no doubt that

Read More

Thinking of Buying a House This Year?

Buying a House This Year? This Should Be Your 1st Step! Monday January 14th, 2019  Buying Myths, Featured, First Time Home Buyers, For BuyersIn many markets across the

Read More