IS THE RECENT DIP IN INTEREST RATES HERE TO STAY

Dated: January 9 2019

Views: 37

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 Mae, the Mortgage Bankers Association, and the National 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? | Keeping Current Matters

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, meet with a local real estate professional who can help prepare you to take action.

Blog author image

Bevia Patrick

Since its inception in 1995, Patrick Team Properties has exemplified a profound commitment to its clients by providing the highest standard of service, integrity and work ethic in the field. Patri....

Latest Blog Posts

Why The 2021 Forecast Doesnt Call For A Foreclosure Crisis

Why the 2021 Forecast Doesn’t Call for a Foreclosure CrisisAs the current forbearance mortgage relief options come to an end, many are wondering if we’ll face a foreclosure crisis next

Read More

Gutter Cleaning Tips And Tricks

Gutter Cleaning Tips And Tricks Oct 29, 2020Bevia PatrickThere are some chores around the house that make you feel like you’ve really done something, giving you a sense of massive

Read More

How Down Payment Assistance Opens The Door To Homeownership

How Down Payment Assistance Opens the Door to Homeownership Many people are eager to buy a home right now while affordability continues to be a highlight of the current housing.

Read More

Why Pricing Your House Right Is Essential

Why Pricing Your House Right Is Essential In today’s real estate market, setting the right price for your house is one of the most valuable things you can do.According to the U.S.

Read More