On the other hand, understanding where home mortgage rates are expected to go allows you to ensure your time your purchase at a time when they are the lowest.
There are many experts speaking out on the future of interest rates in 2019, and anyone who plans to purchase a new home this year should keep in mind where the rate is currently, where they are expected to go in the future and how to ensure you purchase a home with the lowest interest rate possible.
Where Are Interest Rates Now?
Interest rates currently sit around 4.6 percent, which is a rise of over one percent from the previous year.
However, the interest rates have seen a steady drop in the past few months, dropping from nearly 5.1 percent in November to the current 4.6 percent. However, many experts believe this drop to be temporary and not on par with what can be expected in the coming year.
Overall, the interest rates are reasonable at this current moment in time, particularly when compared with where they were just a few months ago and where they are expected to go in 2019.
Where Will Interest Rates Go This Year?
The recent drop in interest rates is not expected to last long, and many experts are predicting interest rates to rise to over 5 percent in the coming year.
Robert R. Johnson – Finance Professor at the Heider College of Business Creighton University – is one of the many who believes interest rates will rise in 2019, stating the following: “The Federal Reserve Board will likely continue to raise rates in order to achieve its dual mandate of stable prices and maximum employment. There’s a greater than 70 percent chance the Fed will raise the Federal Funds Rate by at least 50 basis points. That’s per the CME Group’s FedWatch Tool.”
Johnson – along with many experts – believe the 30-year mid-year rate to rise above 5.5 percent in 2019.
What Rising Interest Rates Mean
So what does it all mean? When taking the previous history of interest rates, where interest rates currently are and where experts believe they will go in 2019, it becomes clear that now is the time to buy for homeowners.
The current 30-year rate is lower than it has been in a while and is not expected to last long. If you wait to purchase a home, you run the risk of paying higher interest rates.
The Bottom Line
All things considered, the interest rates are expected to rise in 2019, although the rate of increase should be significantly slower than it was in the previous year, which saw significant rises in each quarter.
Essentially, the longer you wait to purchase in 2019, the greater the chance of paying a higher mortgage rate.
EXIT Realty Bob Lamb & Associates is Murfreesboro’s most innovative real estate team.
EXIT Realty Bob Lamb & Associates
2630 Memorial Blvd, Murfreesboro, TN 37129