Five out of six major housing authorities are predicting mortgage interest rates to rise above 5% during 2019. During a recent survey of end of year forecasts for next year, only Fannie Mae published a prediction under 5% (they say 4.8% average for the year). The rest of the group, including Freddie Mac, the Mortgage Bankers Association and the National Association of Realtors, all say rates go to between 5.1 – 5.5% over the year. Rates currently sit at about 4.63% on a 30 year loan, depending on when you are reading this post.
There was a time when “5 percent” was an ultra-low rate that got lots of attention. The excitement over a 5% rate stopped when interest rates dropped to their lowest levels in historical times over the past few years. When you’re regularly seeing mortgage payment numbers based on 3.5%, 3.75%, etc., then 5+% is a very scary number.
If you’re gainfully employed and have fair to good credit, now is the time to start investigating for yourself how you are going to buy your first home or condominium.
The best way to get started is to join us at our popular Home Buyer Workshops twice a week. We meet most weeks on Tuesday nights at 6pm and Saturday mornings at 11am where we introduce DC area home buying and subsidized down payment programs, and show you how to use the financing strategically in the local real estate market. We’re real estate agents and can smoothly transition you into actually buying and owning a home or condo if you can follow our playbook and rely upon our representation!