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Where Are Mortgage Interest Rates Headed In 2019?

Where Are Mortgage Interest Rates Headed In 2019?

The interest rate you pay on your home mortgage has a direct impact on your monthly payment; the higher the rate, the greater the payment will be. That is why it is important to know where rates are headed when deciding to start your home search.

Below is a chart created using Freddie Mac’s U.S. Economic & Housing Marketing Outlook. As you can see, interest rates are projected to increase steadily over the course of the next year.

Where Are Mortgage Interest Rates Headed In 2019? | Keeping Current Matters

How Will This Impact Your Mortgage Payment?

Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly.

According to CoreLogic’s latest Home Price Index, national home prices have appreciated 6.2% from this time last year and are predicted to be 5.1% higher next year.

If both the predictions of home price and interest rate increases become a reality, families would wind up paying considerably more for their next homes.

Bottom Line

Even a small increase in interest rate can impact your family’s wealth, so don’t wait until next year! Meet with a local real estate professional to evaluate your ability to purchase your dream home now.


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4 replies
    • Scott Fiechtner
      Scott Fiechtner says:

      Yes, depending on your market, every .25% tick in Interest can affect your buying power by $50,000 on a $500,000 home. What you once qualified for will now buy you less.

      Reply
  1. T.L Sloan
    T.L Sloan says:

    Home prices are starting to crack ( coming down ) Everything goes in cycles including homes prices and they’re not exempt. We have been in an up cycle for almost 10 years. In less employers are giving out 30% raises which they’re not for buyers to afford a continuation in this market or your left with home prices reaching the top in many markets what’s left. Oh yah the realtors need to start telling the sellers that the buyer’s market has arrived. I have seen many home prices dropping and marked my words next year it will be a buyer’s market next year if realtors want to eat. TL. Sloan

    Reply
  2. Sean C.
    Sean C. says:

    I don’t buy the argument. The market is elastic, typically prices will adjust to reflect the diminished affordability unless there is some other factor in play. We do have stock market that has been hot and perhaps that will “trickle down” to wages and other factors that allow working families to afford to spend more on their housing, however, we haven’t seen real wage growth correlated to the Dow/Jones for the last 40 years. In my market, it took a year after rates rose in 2017 because of all the pent up demand, but we’ve started to see prices level off and properties stay on the market longer. That trend will continue unless sellers adjust their prices to where buyers can afford to buy..

    Reply

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