Where are we headed?
April 17, 2019
With Tax Day now behind us, many purchasers who may have ‘back-burnered’ their plans for a home purchase until after April 15 will appreciate that mortgage rates seem to be stabilizing as the spring home buying season kicks into gear. Currently 30-year-fixed rates are hovering around 4.29%, which represents a 15-month low. This is good news for buyers who are now able to take advantage of what is considered a historically low rate, with somewhat more flexible lending guidelines than recent years allowed.
As 2018 came to a close, Fannie, Freddie and the Mortgage Bankers Association all forecast first quarter rates to be higher than what is available currently, with projections of rates varying from 4.8-4.9% during this period. Freddie and the MBA forecast rates to rise as high as 5.3% by the end of 2019.
While none of us has a crystal ball, with much of the country suffering from inventory shortages, home prices do seem to be trending upward, so now may be an excellent time to get off the fence and pursue your next purchase. And if there is a chance you missed refinancing to escape a higher rate earlier, now would be an excellent time to reach out to your trusted mortgage broker or lending officer to initiate a conversation about taking advantage of a lower rate.