Plan On Buying A Home, Here’s What’s Up With Mortgage Rates

Photo by  Jesse Roberts  on  Unsplash

Photo by Jesse Roberts on Unsplash

Thinking of buying a home? Then you may need to know what’s up with the mortgage rates. Unless of course, you’re planning on paying cash.

There's good news and bad news.

The bad news, mortgage rates are rising. After several years for a fixed 30-year mortgage interest rate below 4%, that rate is now 4.625% --which is a 1% increase from 2016. It seems the U.S Federal Reserve may be gradually increasing mortgage rates this year. According to some reports, rates are expected to go up a few times in 2018, in increments of 0.25%, starting this month (April 30th).

The good news, mortgage rates have been at historic lows since the housing market crashed almost 10 years ago. And even though they are still low, mortgage rates have now reached their highest levels in more than four years. This may not be a consolation, because rising rates kind of put the pressure on the process.

But maybe there’s light at the end of the tunnel. Increased rates could possibly mean a decrease in the number of potential home buyers, and [may] ultimately bring prices down. Which could possibly mean prices may balance out. Or at least one can hope.

Is homeownership on your list of goals to accomplish this year?