Mortgage rates are expected to continue to climb in 2018, so it might be worth shopping for a mortgage.
With the markets likely to continue heating up, with help from a newly minted tax reform, and bonds are positioned to continue losing ground.
These leading indicators portend to higher mortgage rates. Housing and finance analysts seem to concur with the upward trend for mortgage rates in 2018.
Following is a short list of predictions for 30-year fixed rates, according to the nation's top authorities
The window of opportunity remains open for those looking to buy or refinance a home in 2018.
Compared to rates below 4%, no one in the market for a new home loan wants to hear these predictions.
The question mortgage shoppers might ask is, why does everyone keep predicting higher mortgage rates? Basically, it's because mortgage rates are currently "too low."
Put another way, mortgage rates should be higher than they are. The economy has made a near-full recovery since almost a decade ago, when the housing downturn took its toll. Unemployment topped out at 10% during the Great Recession and now sits in the low 4s. The stock market is booming, and housing prices are rising, too.
Interest rates usually rise when the economy is doing this well. In the summer of 2007, in the middle of the last boom, 30-year rates neared 6.75% according to Freddie Mac. The boom prior to that — in 1999 — offered rates above 8%.
So why are rates still half that?
That is the question that many analysts have tried to answer. Many cite low inflation, others say wages for the average worker aren't rising enough to spur stronger spending, and therefore a true recovery.
While one could speculate forever on why mortgage rates are still low, the fact that they are should spur refinancing homeowners and prospective buyers. By all accounts, there's a closing window on low rates.
The invisible ceiling will likely break apart in 2018 if current trends continue.
Midwest Equity Mortgage, LLC can work with you on a new purchase loan or talk to you about how a refinance could save you money now and in the future. We have loan specialists who are familiar with the latest trends and news in the mortgage industry. They can advise you on when refinance makes the most sense for your personal needs. Give us a call today to get connected with a dedicated specialist!
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