Mortgage rates didn’t move all that much this year, with the rates for a 30-year-fixed-rate loan hovering around 4% for most of the year. While rates did climb a bit following the 2016 election, they largely stabilized in the range of 4.25% by the second quarter of 2017, and they’ve stayed close to that figure since.
Mortgage rate predictions for the coming year are out already. According to Realtor Mag, economists forecast that housing construction will increase over 2018, which should keep home prices close to or higher than present levels.
Freddie Mac is predicting that home prices will go up in 2018, forecasting that buyers should see the asking prices for properties go up by 4.9 percent. Freddie Mac’s chief economist, quoted in the Realtor Mag article, forecasts that the economy should be good for those looking for mortgages and for housing. Economic growth has been slow and steady for years now, and economists predict that trend will continue going forward into the next year.
What’s Driving the Mortgage Market?
According to Freddie Mac, there are three primary trends that should keep the mortgage market brisk over 2018. These include borrowers using their home equity, a cooling down in the amount of rate refinance activity, and an increase in mortgage purchase volume.
Throughout 2016 and continuing into the present, there has been a steady increase in the value of homes. There’s also been a shift away from people refinancing their existing mortgages. According to Freddie Mac, the mortgage market will likely continue to shift in this way, becoming less of a refinancing market and more of a purchasing market over the course of 2018.
People who already own property in Smyrna or in other parts of the country have been able to benefit from the increasing value of homes. That’s allowed them to tap into their home equity, which allows homeowners to pay down higher-interest debt or to improve their existing properties.
What to Expect
Overall, the housing market looks poised to remain strong throughout 2018 and mortgage rates should remain close to where they are now, according to most predictions, with a chance of rates increasing a bit as the year goes on. That means, if you are looking to borrow, doing it sooner rather than waiting for later in the year could be beneficial. If you have questions about finding a company to help you get lending for your home, be sure to ask us.