INQUIRING MINDS WANT TO KNOW: Is the Recent Dip in Interest Rates Here to Stay?

Dated: 01/09/2019

Views: 36

Is the Recent Dip in Interest Rates Here to Stay? | MyKCM

Interest rates for a 30-year fixed rate mortgage climbed consistently throughout 2018 until the middle of November. After that point, rates returned to levels that we saw in August to close out the year at 4.55%, according to Freddie Mac’s Primary Mortgage Market Survey.

After the first week of 2019, rates have continued their downward trend. As Freddie Mac’s Chief Economist Sam Khater notes, this is great news for homebuyers. He states,

“Mortgage rates declined to start the new year with the 30-year fixed-rate mortgage dipping to 4.51 percent. Low mortgage rates combined with decelerating home price growth should get prospective homebuyers excited to buy.”

In some areas of the country, the combination of rising interest rates and rising home prices had made some first-time buyers push pause on their home searches. But with more inventory coming to market, continued price growth, and interest rates slowing, this is a great time to get back in the market!

Will This Trend Continue?

According to the latest forecasts from Fannie Maethe Mortgage Bankers Associationand the National Association of Realtors, mortgage rates will increase over the course of 2019, but not at the same pace they did in 2018. You can see the forecasts broken down by quarter below.

Is the Recent Dip in Interest Rates Here to Stay? | MyKCM

Bottom Line

Even a small increase (or decrease) in interest rates can impact your monthly housing cost. If buying a home in 2019 is on your short list of goals to achieve, let’s get together to find out if you are able to today.

Blog author image

Heather Witte

Hi, I'm Heather Witte, Owner of the the Witte Group at eXp Realty in Austin, TX. Heather manages a dynamic team of individuals dedicated to raising the bar in residential real estate by consistentl....

Latest Blog Posts

My Happy Place, A Dripping Springs Boutique

My Happy Place is a charming (and affordable) boutique located inside of an 1800’s farmhouse in Dripping Springs, TX that opened December 1, 2017. “…We offer unique

Read More

Dripping Springs, Wedding Capital of Texas

There were multiple reasons for me and my family to move out to Dripping Springs, but the idea all started the first time we drove down Fitzhugh Rd. This windy hilly road not only has multiple

Read More

Urban Infill Investors need an Expert REALTOR

There are a few things I’d like to highlight / go over with you. My Value to You, Your company and Your Investors lies in many time and money driven fields. 1) As a listing agent. I

Read More

Hamilton Greenbelt

This photo was taken on Christmas Day, 2018.  We were blessed to have amazing weather and were able to capture the stunning serenity that Hamilton Greenbelt offers it's visitors.  This

Read More