What Will Mortgage Rates Do in 2018?
LOUISIANA REALTORS • January 30, 2018
Over the past several years homebuyers have enjoyed record low mortgage rates. As the economy continues to recover and thrive after the recession, the threat of increasing interest rates has grown. While the escalation has been small, it doesn’t take much of a change on either side of the decimal point to mean big dollars over the next 30 years. So what does the mortgage
rate landscape have in store for 2018?
CONTACT US
Simply put, rates will be increasing. In 2017 there was a slight increase in March when rates peaked at 4.44%, before ending the year at 4.15%. This year they are expected to increase by about one half of one percent. With this forecasted rate hike, securing a mortgage now, before the increase, could save you thousands of dollars.
Here are a few predictions for 2018:
Mortgage Bankers Association: 4.6%
National Association of REALTORS®: 4.5%
REALTOR®.com: 4.6% average, reaching 5% by the end of 2018.
If you are considering purchasing a new home this year, there is no time like the present to take advantage of these historically low rates. It’s always a good idea to secure your financing before you begin shopping ; and trusting a REALTOR® to help you through this process can ensure a smooth transaction.
From the Louisiana Department of Insurance: Insurance Commissioner Tim Temple joined Governor Jeff Landry and Senate Insurance Committee Chairman Kirk Talbot today to announce that Louisiana is investing an additional $20 million in Fortified homes, bringing the total amount invested in state Fortified projects this year to $100 million. Governor Landry announced that $20 million from the U.S. Department of Housing and Urban Development will be transferred to the Louisiana Office of Community Development Restore Resilient Opportunities for Overhead Fortification (Restore ROOF) program to strengthen residential structures and reduce long-term disaster risk. Earlier this year, the Legislature passed a bill that allows $50 million in additional Katrina and Rita bond money from Louisiana Citizens Property Insurance Corporation to be added to the Department of Insurance’s Louisiana Fortify Homes Program (LFHP). Also beginning this year, LFHP is projected to receive approximately $30 million annually from taxes and fees the Louisiana Department of Insurance collects from the insurance industry. “Building stronger homes is a vital part of making homeowners insurance affordable in Louisiana,” said Commissioner Temple. “I appreciate Governor Landry’s leadership and support as we work with legislators like Chairman Talbot to make Louisiana a national leader in the adoption of Fortified roofs.” The Louisiana Department of Insurance (LDI) has finalized its promulgation of Regulation 136—Fortify Homes Premium Discounts. The purpose of Regulation 136 is to implement the statutory provisions set forth in La. R.S. 22:1483, et seq. , which require that all Louisiana property and casualty insurers provide premium discounts or insurance rate reductions for homes constructed or upgraded in accordance with the fortified standards created by the Insurance Institute for Business and Home Safety. View Regulation 136 here .
Program Partners
Learn about common risks as a real estate agent and tips to stay safe during home showings.
