Freddie Mac economists have lowered their mortgage rate predictions for the remainder of 2016 and even into 2017. It looks like potential home buyers and home owners are going to be able to take advantage of low mortgage rates for a bit longer than previously estimated.
Mortgage Rate Predictions & Brexit
We have already discussed the effects of Brexit on the U.S. and the global economy, especially when it comes to our mortgage rates. Realtor Magazine reported the 30-year fixed-rate mortgage averaged 3.44 percent in July, the lowest monthly average since January 2013.
After two consecutive months of lowering interest rate estimates for this year and 2017, Freddie Mac economists predict the 30-year fixed-rate mortgage will average 3.6 percent this year and 3.7 percent next year.
Stronger Housing Markets
In the Seattle area alone, our strong economy and high income have made our housing market stable. When you combine the low rates with an improvement in wages and job market growth, economists are predicting we will have an even stronger finish for the 2016 housing market. “Mortgage originations are expected to see $2 trillion this year, the highest volume since 2012,” according to the Realtor Magazine article.
While there are still challenges in the housing market, such as low inventory and consequently rising home prices, this is likely to be one of the best years for home sales in a decade. We have had our seasonal ups and downs and many “record-breaking” rates and levels, so it is safe to say that our housing market is strong. If you have not taken advantage of these low mortgage rates, now is the time.
For more information on the lower mortgage rate predictions, read the full article online from RealtorMag.