Global Statistics

All countries
Updated on May 26, 2020 11:11 pm
All countries
Updated on May 26, 2020 11:11 pm
All countries
Updated on May 26, 2020 11:11 pm

3 Things to Know About Rising Interest Rates

What home buyers expect from the 2020 U.S. housing market

HousingMarket Review: The U.S. housing market in 2020 It’s not only home buyers who are closely monitoring the housing...

Q1 2020 State of the U.S. Housing Market

As we embark on the start of a new decade, it seems like an appropriate time to take stock of where we...

U.S. Housing Market Outlook 2020

2020 will be an interesting year for the U.S. housing market, thanks to rate decreases by the Fed and mortgages remaining at...

Market Leaders vs. Market Followers

Responding to market trends is a necessity for most businesses. Consumers are the market and therefore are the ones generally viewed as...

What Lower Mortgage Rates Say About the 2019 Housing Market

HousingMarket Report: How Falling Mortgage Rates Will Affect the 2019 U.S. Housing Market Mortgage rates have been going through...

Unless you have been living in a cave all year, you know that the Federal Reserve is about to raise interest rates, which might affect your pocketbook as you prepare to apply for a mortgage loan or a refinance.

However, the way it has played out isn’t quite what experts predicted. Here are three things you need to know about the current state of mortgage interest rates:

1. They’ve Stayed Low This Summer

Despite predictions since the last quarter of 2014 that interest rates are going to rise at any time, interest rates have stayed about the same for the past several months.

At present, Bankrate notes that the current interest rate for a 30-year fixed mortgage is 3.84 percent. That is almost exactly where it was six months ago.

Although there was a minor fluctuation in July, with average interest rates expanding to about 4.2 percent, August and some low sales reports from the National Association of Realtors brought numbers back down.

2. They Could Go Up Anytime

Last year, experts predicted a rise in interest rates this past spring, as a means to curb inflation. By the time spring came around, experts predicted again that rates would go up in June. When June came and went, folks at Fannie Mae and Freddie Mac changed their minds to September.

Now, people just aren’t sure when rates will go up. The Fed will only raise interest rates if it seems that housing prices are spiraling out of control, and if applications for loans will not entirely plummet as a result.

You know it’s going to happen, you just don’t know when.

3. Rates Will Climb Gradually

Of course, every time there’s a rate hike, people sometimes panic. They choose not to apply for a mortgage refinance because they don’t want to pay a tenth of a percentage point more, or they decide that they have to apply right away because they think they will lose the opportunity otherwise.

The truth is that rates usually don’t rise or drop precipitously. So even if you miss out on getting a rate under 4 percent, you probably won’t be paying 6 percent at the beginning of next year. This means that you can and should take the time to research and apply for the best mortgage with the right lender for you. You’ll save a lot of hassle in the long run.

When mortgage interest rates rise, buyers pay more for their mortgage payments.

However, despite expert predictions that rates would already have risen significantly, they remain low. Although it is likely that rates will eventually increase from these near-historic lows, it does not mean you have to make a hasty decision about your mortgage needs.

If you are preparing to buy a home or refinance your mortgage sometime in the next year, you will still have time to do so.

Hot Topics

Solutions to Make Small Spaces Feel Bigger

Since the real estate bubble deflated seven years ago, many people have learned how to make the most of living their life by adjusting to a slightly...

Get Pet Friendly or Find Another Home

Home buying pet owners should leave nothing to chance and work with a realtor who can help them find a warm and loving community for themselves and their pet.

5 Factors to Consider When Choosing a Neighborhood

Need help finding the right neighborhood for your next home? As the old saying goes, "the first 3 rules of a successful real estate...

Related Articles

How Will the Coronavirus Impact the Housing Market?

Welcome to HousingMarket. This is our first post.

Q1 2020 State of the U.S. Housing Market

As we embark on the start of a new decade, it seems like an appropriate time to take stock of where we...

5 Things Newlyweds Should Consider Before Buying a New Home

Think that you are ready to buy a new home? If so, here are five best practices to implement in preparation for the new home buying process: 1....