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Thursday, November 1, 2018

Breaking News! Release of 2019 and 2020 mortgage rate predictions

October 2018 forecast: Mortgage rate at 5.6% in 2020

|About: |By:, SA News Editor
Predicted Mortgage Rates: 30-year fixed-rate mortgage rates to rise to 5.1% in 2019 and 5.6% in 2020, up from expected average rate of 4.5% this year, according to the October Forecast.

How high will payments go with the higher rates?
4.50% was the Average rate for 2018
5.1% in 2019 (+$49/month on a $300,000 Loan Amount)
5.6% in 2020 (+$143/mo. on $300K LA)
If take into consideration the increase in value (see below)
the payment increase in 2020 is estimated to be +$153 higher.

Home prices are expected to increase 5.4% in 2018 with the growth rate slowing to 4.6% in 2019 and 2.9% in 2020.
 Home price increases on a home valued at $331,100 (Dec 2017):
Value at the end of 2018=+5.4%= $350,000
Value at the end of 2019= +4.6% = + $16,100= $366,100
Value at the end of 2020= +2.9%= +$10,600= $376,700 home
Total of a $45,600 increase in value in THREE years!

Total home sales--new and existing--are now forecasted to decline modestly this year to 6.07M, and then increase 1.8% to 6.18M in 2019 and rising 1.1% to 6.25M in 2020.

Summary statement: 
"While we expect the weakness in housing activity to extend the next few months as the market absorbs the recent uptick in mortgage rates, the combination of strong economic growth and millennials moving toward homeownership should help home sales regain momentum and rise modestly in 2019," says Chief Economist Sam Khater.

Marty Qualls
Cell 801-540-5108

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