Persistent Perserverance, Consistent Results
![The Impact Your Interest Rate Makes [INFOGRAPHIC] | Simplifying The Market](http://movewithmargo.com/wp-content/uploads/2017/06/20170609-Share-STM.jpg)
![The Impact Your Interest Rate Makes [INFOGRAPHIC] | Simplifying The Market](http://d39ah2zlibpm3g.cloudfront.net/wp-content/uploads/2017/06/08171147/20170609-Cost-of-Interest-STM.jpg)
Source: KMC
To start the year, housing experts all agreed on one thing: 2017 was going to be the year we would see mortgage interest rates begin to rise. After years of historically low rates, and an improving economy, the question wasn’t if they would increase but instead how much they would increase. Some thought we could see rates hit 5-5.5% by the end of the year.
However, the exact opposite has happened. Instead of higher rates as we head into the middle of 2017, we now have the lowest rates of the year (as reported by Freddie Mac). Here is a graph of mortgage rate movement since the beginning of the year:
Four major entities (Freddie Mac, Fannie Mae, the Mortgage Bankers Association and the National Association of Realtors) are still projecting that rates will increase by the fourth quarter of the year.
No one knows for sure where interest rates will be in six months. However, if you are thinking about buying your first house or trading up to the home of your dreams, you can still get a mortgage at historically low rates RIGHT NOW.
Source: KMC
If you are considering moving up to your dream home, it may be better to do it earlier in the year than later. The two components of your monthly mortgage payment (home prices and interest rates) are both projected to increase as the year moves forward, and interest rates may increase rather dramatically. Here are some predictions on where rates will be by the end of the year:
“While full employment and rising inflation are signs of a strong economy, they also have the potential to push mortgage rates and house prices up. The higher rates and higher prices create significant affordability concerns, which may continue to characterize the housing market for the rest of 2017.”
“By the time we get to the fourth quarter of this year, we will still be under 5 percent – we are thinking 4.7 percent…Something north of 5 percent by the time we get to 2018, and by the time we get to 2019, we show fourth-quarter rates hitting 5.5 percent.”
“Despite some regional disparities, title agents and real estate professionals do not expect increasing mortgage rates to have a significant impact on the housing market this spring. Continued good economic news, increasing Millennial demand and confidence that buyers will remain in the market even if rates exceed 5 percent bode well for 2017 real estate.”
“We will probably see rates higher at the end of year, around 4.5%.”
If you are feeling good about your family’s economic future and are considering making a move to your dream home, doing it sooner rather than later makes the most sense.
Source: KMC
![Do You Know the Cost of Waiting? [INFOGRAPHIC] | Simplifying The Market](http://movewithmargo.com/wp-content/uploads/2017/05/20170505-Share-STM.jpg)
![Do You Know the Cost of Waiting? [INFOGRAPHIC] | Simplifying The Market](http://d39ah2zlibpm3g.cloudfront.net/wp-content/uploads/2017/05/04121725/20170505-Cost-of-Waiting-STM.jpg)
Source: KMC