If you are considering moving up to your dream home, it may be better to do it sooner rather than later. The two components of your monthly mortgage payment (home prices & interest rates) are both projected to increase as the year moves forward, and interest rates may increase rather dramatically. Here are some predictions as to where rates will be next year.
Michael Fratantoni, Chief Economist at the Mortgage Bankers Association:
“The MBA believes that mortgage rates will rise to 4.6% next year, then above 5% in 2019 and 2020.”
Frank Nothaft, Chief Economist at CoreLogic:
“Fixed-rate mortgage rates are likely to gradually edge higher over the next six to 12 months. Rates are likely to rise to 4.25% to 4.5% by the end of 2017.”
Brett Sinnott, Vice President of Capital Markets at CMG Financial:
“The Fed did keep annual rate increase on the table for 2017 and stated a target of at least three rate hikes for 2018.”
If you are feeling good about your family’s economic future and are considering making a move to the home of your dreams, doing it sooner rather than later makes the most sense.