2018 Mortgage Trends: A Continued Climb
Economists continue to predict that the Federal Reserve will maintain its course of rate hikes. As predicted, the second hike of the year occurred this past June. The one surprise that emerged from the meeting was the indication that there may be two more hikes amounting to four total in 2018 as opposed to previous references to three in total. Expect the next hike in September or December.
What does this mean for homeowners? Well, if you are considering buying then the sooner the better if you plan to finance your purchase. Rates are only predicted to climb throughout 2018. Presently, rates are at their highest since 2011. 30-Year fixed mortgage rates are averaged 0.75% higher than this time last year. This translates to roughly a $200 per month increase in one’s mortgage payment. In short, purchase power is decreasing. This is exacerbated by the continued trend of home values in our area.