So everyone is asking about mortgage rates and what is going to happen in 2018. No one knows for sure, but there are several groups that have forecasted their expectations for 2018. My common answer is we expect them to rise, but I’ve said that for the last few years and frequently been wrong!! Here’s what some groups are saying:
The Mortgage Bankers Association releases their estimates. This is what they expect to see in 2018:
First quarter 2018: 4.3%
Second quarter 2018: 4.5%
Third quarter 2018: 4.7%
Fourth quarter 2018: 4.8%
Not terrible – but by the end of the year, it will definitely affect your wallet! They also anticipate rates going up to 4.9% in 2019.
Fannie Mae also estimates rates for 2018 – I like their outlook better than the MBA’s outlook!
First quarter 2018: 4.0%
Second quarter 2018: 4.1%
Third quarter 2018: 4.1%
Fourth quarter 2018: 4.2%
Fannie Mae has been fairly accurate over the last couple years – let’s hope that continues in 2018! It would mean a very slight increase – barely a .25% and that would really help those that are planning to buy later in 2018!
Freddie Mac shows the interest rates increasing more than Fannie Mae, but not quite as much as the MBA does.
First quarter 2018: 4.1%
Second quarter 2018: 4.3%
Third quarter 2018: 4.4%
Fourth quarter 2018: 4.6%
They expect rates to increase more towards the end of the year. I think there are many that expect this to be somewhat accurate.
The reality is no one knows for sure what will happen – this is all based on estimates. What we do know is that mortgage interest rates have been really good for the last few years. We know rates will increase at some point. If you are thinking about buying in 2018, it may make sense to look earlier than later if you can! With home prices increasing and mortgage rates probably increasing, you will be able to buy more home now than later in the year. Let me know if you have questions or need help with a mortgage pre-approval!