Posted by 4 weeks ago.
Late last year, the Mortgage Bankers Association released their 2018 mortgage rate forecast, which called for a gradual rise through 2018. This prediction is still on target, according to Bankrate.com, so if you are thinking of buying a home in southeast Michigan this spring or summer, it is probably worth doing your mortgage shopping now.
Shopping for a mortgage prior to looking for a new home is also wise because it allows you to lock-in your mortgage rate and get a preapproval for a mortgage which is an essential part of the home-buying process. A mortgage preapproval will help you know how much you can afford to spend on your home purchase and it can also help you identify any issues you may have with your credit (see our previous blog on home financing and your credit score here).
Bankrate.com reports, for comparison purposes, that the average rate for a 30-year fixed-rate mortgage was 4.15 percent at the end of 2017. They are still expected to increase in 2018 by roughly half of one percent this year. Therefore, unless you act now to do your mortgage shopping and home buying, your mortgage could cost several hundreds to thousands of dollars more by the end of 2018.
The following mortgage rate predictions from the nation's largest home financing and mortgage groups give additional insights into how rates for the 30-year fixed-rate mortgage may change throughout the rest of 2018:
- The Mortgage Bankers Association predicts it will rise to 4.6 percent in 2018.
- The National Association of Realtors expects it to be around 4.5 percent at the end of 2018.
- Realtor.com says the rate will average 4.6 percent and reach 5 percent by year-end.
With mortgage rates poised to rise, based on these predictions, now is the time to get started with your home buying journey by checking out local mortgage rates, getting your mortgage preapproval and starting to look for the right realtor to help you find a home that meets your personal needs and financial parameters.
Of course, if you are looking to refinance an existing property, this is the perfect time to take action as well, before rates rise toward the end of the year. Many experts say that it's worth refinancing your mortgage if you can lower your rate by half of one percent.
Bottom line: there's still a window for you to lock-in a relatively low mortgage rate this spring and summer to maximize your home-buying dollars. Once you do, contact The Wagley Group to get started on the next steps of your home-buying journey!
Tags: Lenawee County mortgage hike,real estate financing 2018,Mortgage rates 2018