Mortgage rates falling more than anyone expectedMortgage interest rates have been dropping throughout 2019.
Sacramento Mortgage rate forecast for the rest of 2019 No one has a crystal ball that can accurately forecast where rates will land by the end of this year. Yet many real estate pros feel good about rates remaining low or even dropping further. Last November, we asked respected industry experts for their mortgage rates predictions for 2019. Interestingly, most agreed that 30-year fixed rates would average 5.5% and 15-year fixed rates would average between about 4.5 and 5.0% by mid-2019. Last November, experts predicted 30-year rates around 5.5% by mid-2019. Rates are now at 3.6% according to Freddie Mac. Turns out that rates dropped a lot more than these and most other experts expected. As of this writing, the 30-year rate is just 3.6%; the 15-year rate is around 3.05% according to Freddie Mac. Now, we’ve asked many of these same pros (and a few new ones) for their predictions on rates through the end of the year. Take a look at their projections for 30- and 15-year fixed-rates, which may help you make a more informed decision about getting a mortgage loan in the weeks and months ahead. Robert R. Johnson Expert: Robert R. Johnson, finance professor, Heider College of Business, Creighton University Late 2019 mortgage rate forecast: 30-year loan: 3.47%. 15-year loan: 2.90% Reasons why: “I am basing my predictions on the near unanimity in the financial markets that the Fed will lower the target fed funds rate by between 50 and 75 basis points by the end of the year. Anything that would cause the Fed to reverse course would likely lead to mortgage rates remaining near current levels or declining only slightly.” Ralph DiBugnara Expert: Ralph DiBugnara, president of Home Qualified Late 2019 rate forecast: 30-year loan: 4.25%. 15-year loan: 3.75% Reasons why: “I believe we will see rates steady around the current range till at least November of this year. That’s the time of year when we have historically seen an increase. The biggest factor is what the Fed’s policy will be on the borrowing rate. All signs up to now have pointed to a reduction. I do believe we will see an increase in homes being bought, as prices have steadied. And with rates low, there is a large opportunity again to find value. This could influence the opinion on whether rates should be raised or not.” Ben Mizes Expert: Ben Mizes, CEO/founder, Clever Real Estate Late 2019 rate forecast: 30-year loan: 4.0%. 15-year loan: 3.87% Reasons why: “Rates are low and will continue to stay low, as economic activity has slowed and the Fed wants to spur growth. Depending on how much the Fed wants to prioritize growth, rates could go even lower. The Fed will look to increase economic activity. We’ve seen home prices falter in key markets throughout 2019, and I predict a slowdown toward the end of the year. The political climate also has the potential to drastically change rates.” Michael P. Goldrick Expert: Michael P. Goldrick, chief lending officer for PCSB Bank Late 2019 rate forecast: 30-year loan: 4.125%. 15-year loan: 3.5% Reasons why: “The mortgage interest rate climate over the past few weeks has trended slightly downward, based upon a cautious economic outlook. Since mid- to late May, the 15-year and 30-year fixed rates have dipped approximately 25 basis points. But they’ve been relatively steady since late June. My prediction for 2019 is that rates will increase slightly. This increase is predicated partly upon a correction of rate drops of approximately 50 basis points from earlier in the year and the continuance of a favorable economy and some inevitable inflation. Key factors that will influence a push for higher mortgage rates in the remainder of 2019 are a favorable economy, low unemployment and potential inflation.” Colin RobertsonExpert: Colin Robertson, founder/owner, The Truth About Mortgage Late 2019 rate forecast: 30-year loan: 3.625%. 15-year loan: 3.0% Reasons why: “The trend has been borrower-friendly for months, thanks to our newfound shaky economy and ongoing trade war concerns. Everyone is probably surprised to see a 30-year fixed rate back below 4 percent, considering it was pegged to hit 5 percent. That being said, there might be limited potential for decreased rates as we near all-time lows once again. The lower they go, the harder it will be for them to go any lower.” |