Experts from all real estate associated companies have been predicting home values would keep rising and that mortgage rates would follow suit. But according to CoreLogic, some rate and price forecasts may suggest that mortgage rates may only rise slightly or even dip a bit lower. They say this may help spur home sales.
Also notable, is that the median U.S. sales price in March 2019 was up 3.5% over last year but down from an annual 8% gain in March 2018. The typical mortgage payment only rose 1.9% this March due to an approximate 0.1 percentage point decline in mortgage rates from the previous year.
The CoreLogic Home Price Index (HPI) and the HPI Forecast suggests an average gain in home prices from month to month until next March of 4.3%. A modest increase in value. If we combine that forecast with the average among six mortgage rate forecasts, the annual change in the typical mortgage payment month over month will average out to 0.9% including five months where a slight decline is predicted.
One thing I find interesting is that CoreLogic talks about inflation as it applies to mortgage payments. It seems we may have reached the point economically where we are no longer in a depression but have come full circle and are hedging into an inflationary economy. Watching Freddie Mac’s average rate on a 30-year mortgage can help you determine where the rates are headed. By taking a year’s worth of data and averaging that out, you can get a good feel for the future. Those rates do not take into account for local taxes, fees or insurance payments but are a good interpretation of whether buying a home can be affordable.
Will this be the end of mortgage rate increases? Who knows, but the historical data above shows that for the time being mortgage rates should remain steady over this year. My advice…buy now, build equity, don’t wait for that rainy day when inflation will be on the increase and so will mortgage rates and payments.
And remember if you, a friend or family member need assistance with selling or buying a home I can help. Referrals and people needing relocation assistance are welcome! Search Single Family homes in Greenville. Search Condos and Townhomes in Greenville.