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?
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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.
Association emphasizes lower monthly expenses, more housing options and practical relief for Louisiana families.
Want Your Teen to Own a Home Someday? Start Talking Money Now Teens may not be thinking about mortgage rates or down payments just yet, but the money habits they’re building now can follow them for years. And 88% of teens surveyed by Fannie Mae and Junior Achievement said they want to own a home someday. This week’s Consumer Guide: Talk to Your Teens About Money and Homeownership makes those conversations a little easier, covering everything from credit scores and budgeting to debt, renting versus owning and saving for that eventual down payment. So yes, you may have to interrupt the doomscrolling. But helping teens get smarter about money today could put them in a much better position to get the keys to a home of their own down the road. Download all of NAR’s Consumer Guides in English or Spanish at facts.realtor. For ease of reference, below is a list of the most recent guides: NEW: Teen Financial Literacy Fraud Red Flags Helping Family Members Become Homeowners Prepare Your Home for Hurricane Season Condominium Insurance Thank you for your continued engagement with the “Consumer Guide” series and for sharing the resources with prospective clients to ensure they have the information they need to find success in their home buying or selling journey. Remember that these guides are for informational purposes only and are not meant to enact or change any existing NAR policy. The next Consumer Guide, scheduled for publication on Oct. 21, will cover winter cold and storm preparedness.
Homeownership Is on Louisiana's November Ballot
