Now that 2018 is in the books, take a look at the ups and downs. After a drastic increase in mortgage rates in the first quarter things calmed down until September. The last month and a half gave back almost a half a point again.
So what is going to happen to the mortgage rates in 2019?
In my almost 20 years of experience, the mortgage market has been very hard to predict. Often the experts are wrong especially in the short term. With that being said, lets take a look at what the housing authority experts are telling us.
Most experts agree mortgage rates will end 2019 higher than they started. The expected increase by most housing authorities will be almost 1%. When you combine the increase in rates along with the expected increase in home prices, you could be looking at a total cost increase of approximately 10%.
Take a look at the 5 yr and 10 yr cost of a 1% increase in rate to your interest costs assuming a $200,000 loan.
Remember, interest cost is only one cost of owning a home.
|Monthly Interest Cost||+$165.63|
|First 5 Yrs. Interest Cost||+$9,938|
|30 Yrs Interest Cost||+$43,995|
So, if you are thinking about buying a new home in 2019, the sooner the better. Lock in those lower interest rates and enjoy the savings. As always, I am committed to providing my customers the very best interest rates available from the very best wholesale lenders available. Check out Today’s Rates. I hope to hear from you in 2019!
**Image source: Freddie Mac