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