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.
Local realtors with established businesses should expect increased urgency in the market from their buying clientele. “It’s a great time to push your prospects right off the fence by keeping them informed on rate predictions & actual movements,” commented Gerard DiRuggiero, Principal Broker of UrbanLand Company. “We’re already seeing a burst of activity in our public Homebuyer Workshops from informed prospects who watch the mortgage markets.”
Do you need to meet more leads and prospects to take advantage of the coming interest rate urgency? We’re on our 2019 recruiting drive and looking for motivated full-time realtors who want to increase their volume with our brokerage leads & prospects. We also love meeting part-time agents with great availability & a desire to transition to full-time.
For agent participation in our Workshops, call/text 202.335.2201.