Offbeat: Here’s what mortgage rates will do next year, from the people who usually get it wrong - - PressFrom - US
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OffbeatHere’s what mortgage rates will do next year, from the people who usually get it wrong

09:05  16 december  2018
09:05  16 december  2018 Source:   marketwatch.com

When 2+2=5: How mortgage calculators are misleading

When 2+2=5: How mortgage calculators are misleading Online mortgage calculators are free and easy to use, yet many fall short of giving all the information you need to estimate a house payment.

Adjustable Rate : Interest rate will change under defined conditions (also called a variable- rate or hybrid loan). Here ’ s how these work in a home mortgage . Lenders often offer lower interest rates for the first few years of an ARM, but then rates change frequently after that – as often as once a year .

Here ' s more about locking in your interest rate . Getting a mortgage rate lock is a way to keep your home loan’s interest rate from moving higher before closing. Rates are up one day and down the next . Even noted economists who insist on declaring long-term trends are often wrong .

Here’s what mortgage rates will do next year, from the people who usually get it wrong

Rates for home loans have spent the past decade or so doing anything but what’s expected of them. Every year, it seems, the general consensus is that in the coming months, financial conditions will finally get back to “normal,” taking mortgage rates with them. And every year something has brought that “normalization” to a screeching halt.

In 2015, for example, shock-and-awe bond-buying by the European Central Bank helped push bond yields into negative territory in Europe and behind. In early 2016, markets were rocked so badly by concerns about earnings that there were fears of another recession – and then rocked again by the upset Brexit vote.

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Here are the average mortgage interest rates This makes is easier for people to afford a mortgage , helping people to get on the property ladder. If you had one of the average interest rates from the section above, say the 4.33% for a Standard Variable Rate , here ’ s how your mortgage costs would work out over a 25- year mortgage .

“ People still think they need 20% down,” Ishbia says. “Three percent down, 5% down are the ways Michels says listing agents will usually advise sellers to go with the buyer who has the most cash on “You know what’ s changed in the last three years in mortgages ? Speed to closing is more important

2017, which started off with concerns about surging bond yields under a pro-growth, anti-tax president, instead saw many months of a “Trump slump” when tax reform took a while to materialize.

Mortgage rates in 2018 may be the closest thing to “normal” we’ve seen in a long time. With two more weeks in the year as of this publication, we’re likely to see a full-year average of 4.54% for the 30-year fixed-rate mortgage. That will be the highest since 2010.

And for 2019? Given all the variables in both financial markets and housing, forecasting mortgage rates is for the “intrepid,” in the words of Mark Zandi, chief economist for Moody’s Analytics, and a long-time housing watcher. And those are just the known unknowns. Who can guess the curveballs lying in wait in financial markets, earnings, economic data, housing markets, and beyond?

Some of the hottest housing markets are falling the hardest

Some of the hottest housing markets are falling the hardest Home sales have slowed to a crawl nationally, and it's not just the winter temperatures. The market's pulse has become weaker, especially in areas that were hottest just last spring. In November, just 32 percent of offers written by Redfin, a real estate brokerage, saw multiple offers. That is down from 45 percent in November of last year. In Seattle, where demand has outstripped supply for years, the drop is more abrupt. More than half of homes a year ago saw bidding wars, while less than a quarter are seeing them now.

To determine how much house you can afford, most financial advisers agree that people should Knowing what you can afford can help you take financially sound next steps. The last thing you want Be sure to factor in your long-term goals so you don’t get stuck with more house (and mortgage ) than

Year after year , I watch in dismay as students obsess over getting straight A’ s . Some sacrifice their health; a few have even tried to sue their school after falling short. [Never be uninteresting. Read the most thought -provoking, funny, delightful and raw stories from The New York Times Opinion section.]

With that in mind, here are some thoughts from a few of those “intrepid” souls.

Name Institution Forecast, full-year average, 30-year fixed-rate mortgage
Sam Khater Freddie Mac 5.1%
Danielle Hale Realtor.com 5.3%
Mark Zandi Moody’s Analytics 5.0%
Sam Bullard Wells Fargo Economics Group 4.9%
Rick Sharga Carrington Mortgage 5.25%
Mike Fratantoni Mortgage Bankers Association 5.1%
Doug Duncan Fannie Mae 4.8%

Also see:Americans’ fascination with ‘mortgage rates:’ a tour through financial market history

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