It looks like the market is already starting to follow our projections for the 2017 real estate market. While mortgage rates have been declining over the past several years, National Association of REALTORS® warned us back in 2016 that they were expected to start rising again, and they were right. In fact, it seems they underestimated how much mortgage rates would increase.
30-year fixed mortgage rates moved up fast from the 3.6% we reported toward the end of 2016. From the start of the new year, mortgage rates jumped to 4.20% by January 5th. While this rate moved down to 4.09% by January 5th, it made a 10 basis jump up to 4.19% over one week. In their U.S. Economic Outlook, NAR estimated that 30-year fixed rate loans would reach 4.1% by the end of the first quarter this year, and eventually hitting 4.6% by the end of the 4th quarter.
This just strengthens our reason for buyers in real estate to find a home sooner rather than later. While mortgage rates are still relatively affordable compared to the 10-16% averages we saw in the 80's, a small change in interest rates can add thousands of dollars to your debt by the time your house is payed off.
The table below shows the weekly change in national mortgage rates reported by Freddie Mac as of January 26, 2017
This data was pulled from Freddie Mac weekly survey data for 2017. While we attempt to provide reliable, useful information, we cannot guarantee that the information is accurate, current or suitable for any particular purpose. Estimates are subject to change without notice.
Make sure to keep an eye on these rates throughout this year if you're thinking about buying. These rates will fluctuate often, and if you see them making a sharp climb, it may be time to start thinking about locking in on a mortgage rate before rates get even higher. Keep in mind that mortgage rates are expected to climb through 2018.
2017 Market Outlook
What All Buyers Should Be Aware of Before Buying a Home
Valuable Advice For Homebuyers In The 2017 Real Estate Market
Mortgage Market Survey Archive