Financial experts are predicting that mortgage rates will go up in 2019, but they aren’t predicting that this will have a significant affect on home sales. If you’re putting your Smyrna real estate on the market, know that buyers probably won’t be put off by higher mortgage rates. If you’re buying, don’t expect the rate increases to create much of a change in the market.
What to Expect with Rates
Experts are predicting that mortgage rates will go up in 2019, to as much as five percent. Rates, however, aren’t the only factor in the performance of the housing market and, despite the increase, mortgage rates are still at historic lows. At the same time that mortgage rates are going up, consumers have seen an increase in household income since the year 2000, and that means they have more power to buy houses. Between the historically low mortgage rates and the increased household income, the real estate market should remain quite healthy throughout the year.
Rates Won’t Rise Quickly
Fannie May is predicting that rates will remain at approximately 4.6 percent for 30-year fixed rate mortgages for most of 2019. Home prices are expected to go up during 2019, as well. For those who are considering buying a home, these trends are worth noticing. If you’re planning on buying in 2019, it would likely be better to do it earlier in the year, before the prices go up. While the winter season usually isn’t as busy as spring and summer for real estate, your Realtor can certainly find you good deals on Smyrna properties at any time of the year. The real estate market in Smyrna has been performing well over 2018 and, despite the predictions that mortgage rates will go up, financial and real estate experts aren’t predicting that the market in general will cool down during 2019.
Advantages to Moving Fast
If you want to start looking for property during 2019, getting a hold of your Realtor as soon as possible is advisable. You’ll want to get prequalified for a mortgage. This isn’t a commitment on the part of any lender, but it gives you a solid idea of how much money you can borrow, and that makes it a lot easier to work with your Realtor to find an appropriate property.
Mortgage rates might be going up, but keep in mind that they are very low compared to the historic norm. With a strong economy and good household incomes, it’s realistic to expect that the real estate market in Smyrna will be hot, even in January!