Before the new year, many people were saying, “Quick, buy now before rates go up!”
Leading housing authorities have all predicted a rise in mortgage rates, with all but one forecasting rates going above 5% in 2019, according to The Mortgage Reports.
Before the new year, rates were close to 5%, making it seem like all the predictions would be coming true in the new year. Instead of rising, conventional loans have come down to 4.3%-4.5%. FHA rates have dropped as well - to 3.8%. For people who are ready to buy a home this year, these rates are great news.
Both Conventional and FHA loans have low down payment options, with Conventional going as low as 3% down and FHA at 3.5% down. Between the low mortgage rates and low down payment options, now is a great time to meet with a mortgage professional and begin the pre-approval process.
For those of you just going under contract, you may be wondering if you should lock in your mortgage rate now, or take your chances and see if the rates drop even more. If your home is closing in 30 days or less, now is a good time to lock in. Always talk with your mortgage broker about this, as they know your full financial situation and details.
Though there is no crystal ball to see the future of the real estate market in 2019, there are definite trends that are setting the tone for the market in the new year. With experts are still predicting that by the end of 2019, mortgage interest rates will be above 5%, now may be the best time for you to buy.
Are you ready to meet with a mortgage professional to review your options? Contact us today.