Have you been wondering what the big deal is about interest rates recently?

Mortgage Rates Outlook for 2018

It seems like we keep hearing about interest rates on the rise for this year. Let me share the latest forecast on mortgage rates by James Wood, real estate and economic development research specialist at the University of Utah, found in the February 2018 Salt Lake Realtor Magazine.

Dr Wood reports on several predictions for the 30-year fixed-rate mortgage from some of the largest housing and mortgage groups:

- The Mortgage Bankers Association predicts the rate will rise to 4.6 % in 2018.

- The National Association of Realtors expects the mortgage rate to be around 4.5 percent at year-end.

- Realtor.com believes the mortgage rate will average 4.6 percent over the year but reach 5.0 percent by year-end.

- Freddie Mac's forecast is for 4.6 % by year-end 2018.

- CoreLogic's consensus view from six forecasters has the rate at 4.7 percent in December of 2018.

So there we have it. We can expect mortgage rates just under or at 5 percent as 2018 progresses and that will help preserve favorable housing affordability for another year.

However, if you are planning to purchase a home this year, the sooner you start, the better. You will be able to get a better interest rate earlier in the year. According to Bankrate:

The average 30-year fixed mortgage rate on 1/31/18 was 4.38%

The average 30-year fixed mortgage rate on 2/7/18 was 4.44%.

The average 30-year fixed mortgage rate on 2/14/18 was 4.51%

Here are a few numbers for you to think about.

A super simple, online mortgage calculator tells us that the payment for a 30 year loan for $350,000 at 4.44% would be around $1761. The same calculator tells us that the same loan at 5% would be $1879. That is a $118 difference per month. (These are generalized numbers, a real mortgage lender can give you real numbers for your situation.)

If you are thinking about buying a home this year, give me a call and we can get the process started. We can get you pre-approved and ready to purchase as soon as we find the home you are searching for. 801-631-3430

PS, here is my post about 2017's rates. Pretty close forecast.

Brought to you by Heath Harvey @ HeathsHomes.com

Interest Rates: Not as discouraging as you might think

Mortgage rates. Just the sound of the two words put together sort of makes some of us get a little nervous, anxious, or intimidated. Possibly you've already heard gloomy 2017 projected reports, but don't worry or feel alarmed.

Interest rates are constantly changing, dynamic numbers that most of us don't understand. They are altered by presidential elections, employment and labor markets, energy prices, tax cuts and other political policies, and much more. But here is the simple version of what you need to know in one sentence:

Interest rates are going to go up as this year progresses. 

As of today, the folks at Bankrate tell us a 30 year fixed mortgage rate in Utah is 4.03%. By the end of 2017 Kiplinger expects the average to be in the 4.6% range. Today a 15 year fixed mortgage rate is 3.16% and Kiplinger expects it to raise to 3.8%.

See, that was easy. No big deal. There has been a big hype in the media about soaring interest rates this year as the Federal Reserve board members predicted rates to dramatically increase this year. But they have recently realized that we really won't see much of a hike in 2017, just a gradual increase.

What does this mean for you and your neighbors? It's a great time to buy a home or refinance to take advantage of the current rates. It's wonderful news.

Brought to you by Heath Harvey @ HeathsHomes.com