Are Interest Rates Going Up This Year And Is It A Good Time To Buy A Home?

This Article On “Are Interest Rates Going Up This Year?” UPDATED On October 14th, 2018

When it comes to the current housing market, no one can, without absolute certainty, predict the values of homes.

• Are they going up, or are they going down?
• While financial analysts and industry experts can forecast events by using past data, they cannot be certain of future outcomes
• With that said, there is much speculation on what the Federal Reserve is going to do to interest rates in 2019
• Will 2019 be a good time to buy a home?

Property Values

Property values throughout the country has been escalating for the past several years:

• Are Interest Rates Going Up This Year?
• Interest rates have a direct effect on property values
• It affects a home buyer’s decision because the interest rate is used in the calculation of a monthly mortgage payment
• An interest rate hike can mean deal-or-no-deal on a particular house for a buyer who has a marginally close or high debt-to-income ratio
• This is due to a direct causation of interest rates and the impact on a monthly mortgage payment
• Although, while rising interest is a factor in the real estate market, it isn’t the only factor as supply and demand and readiness of capital also drive the housing market

Brexit And Mortgage Interest Rates

With Great Britain’s vote to leave the European Union on June 24, 2016, the notion of raising interest rates is unlikely. According to Freddie Mac, interest rates are likely to go up to at least 6% by the year 2020.

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Weak Job Growth And The Home Purchase Market

Weak Job Growth And Impact Of Home Purchase Market:

• Are interest rates going up this year?
• Its no secret that the U.S. job market is tied to the housing market
• The Federal Reserve has indicated that slow job growth will halt any interest rate hikes
• Additionally, the Federal Reserve does not historically raise interest rates right before an election
• In its May 2018 meeting, the Federal Reserve announced they will raise interest rates due to hot economy,  job growth and great economy

President Donald Trump has called the Federal Reserve Board crazy.

So Should You Buy A House Now Or Later?

Deciding when to buy a home is a very personal and emotional decision that takes lots of forethought, research, and careful planning.

• If you are ready to buy now and are sitting o the fence because you are not sure what is happening with home prices, now is the time!  
• Interest rates are still reasonable
• Market prices are still well below 2008 trends, prior to the bursting housing bubble
• While inventory remains low, buyers are still in a great position to negotiate good terms on a home purchase.

About the Author Of Are Interest Rates Going Up This Year

Alex Carlucci is a senior mortgage loan officer with Gustan Cho Associates and is a senior writer and partner with Gustan Cho and Associates. Alex is armed with decades of accounting and finance knowledge.

• Alex has an MBA and a Master’s Degree in Accountancy, and has advanced knowledge of business taxation
• Alex’s passion is helping others and being armed with his extensive accounting experience and being an expert in real estate and finance
• Alex partnered up with Gustan Cho Associates
• He is a full service mortgage banker specializing in FHA Loans, VA Loans, USDA Loans, Conventional Loans
• FHA 203k Loans, Reverse Mortgages, Jumbo Mortgages, Non-Conforming Loans, and Commercial Loans his areas of expertise
• Alex’s specialty will be originating mortgage loans with no lender overlays
• Alex Carlucci represents Gustan Cho Associates a five-star national mortgage company WITH NO OVERLAYS
• Gustan Cho Associates has its policy in closing loans in 21 days

If you have any mortgage lending questions and Home Purchase and like to go over case scenarios and know more about the area, feel free to contact us at Gustan Cho Associates Mortgage Group.