The clock is ticking… When it comes to buying a house, time is of the essence – at least according to Freddie Mac’s latest forecast. The GSE expects mortgage rates to jump nearly a half-percent by the end of 2019.
Rising rates will only get worse
Mortgage rates may have risen slightly over the past few months, but according to new forecasts things are only going to get worse. By the end of Q4 2019, the GSE expects rates on 30-year fixed mortgages to reach 5.1 percent – meaning if you’re looking into buying a house, now’s the time to pull the trigger.
Fortunately, there is a silver lining. By 2019’s close, they also expect house price growth to stall significantly, dropping from an annual rate of 7.1 percent in 2017 to 4.3 percent in two years.
“While housing inventory is still tight, we expect the increased construction of new homes to help reduce the pressure on house price appreciation, which is currently at an annual rate of around 7 percent. “Home sales are holding up despite the increase in mortgage rates compared to last year.” Read More