Mortgage rates remain at unprecedented lows. Homebuyers and existing homeowners can rest assured that this year looks to remain on the same path as it has for the last several years. This year may see an uptick in mortgage refinancing activity and new home starts and sales as a result of affordability in home prices.
- Mortgage rates for fixed loans will remain low
The mortgage rate on fixed loans will not budge this year. The Federal Reserve has not indicated any desire to increase interest rates, and as long as they remain low the forecast suggests that 30 year fixed rates will follow.
- Mortgage applications will see an increase
With sustained low-interest rates, more renters and first time buyers will seek opportunities to enter the market. Affordability in new homes will also affect the increase in new applications as well.
- Increase in Refinancing of Mortgages
Many of the applications in the surge will belong to homeowners seeking a refinance. Owners will want to lock down these rates while they still can. Many owners have been monitoring the industry and waiting for the right time to refinance. With talk of the Federal Bank hoping to raise the rates moving into next year or beyond, those seeking refinancing will want to not miss this prime opportunity to save money.
- Poor Gains in the International Market
Less than stellar performances abroad mean fewer investments in American products and good. Countries in Europe were thriving, but now they are dealing with sluggish economies.