The Mortgage and Housing Markets in 2018 and Beyond
Are you waiting for mortgage rates to go down? You may have to apply for a mortgage here in Maryville soon if you want to avail historically low rates. Migonline.com noted that many industry experts predict mortgage rates rising even higher in the following years.
Discussion About the Future
Economists from the Mortgage Bankers Association recently convened in Denver, Colorado for its annual conference. During the conference, the attendees discussed what the nation’s economy and the housing market would be like in the following years. They expressed both concerns and hopes for 2018 and beyond.
A Dip and a Rebound
For next year, experts predict total mortgage originations to fall significantly. This fall comes from a whopping 28.3% decrease in refinancers. In 2019, however, experts believe that a rebound will occur — which is driven by purchase originations — although refinances will likely continue to decrease. By 2020, they think that purchase mortgage originations will continue to rise.
A Steady Rise
In terms of mortgage rates, MBA experts think that mortgage rates will reach 4.6% by next year. By 2019 and 2020, they predict rates to reach 5% and beyond. With this, when you plan to sell your house soon, you may have to take out a mortgage within 2017 to avail still low rates.
A Coming Hope
When you plan to hold on to your current house, you can wait for future developments. The economists predict stabilization in housing prices in the following years. You can then expect houses you want to have to fall within financial reach. In spite of this, you will still need wage growth to help you afford the higher rates and a house.
The industry experts hope for the coming of wage increases in 2018. You either wait for such wage increases and subsequently apply for a mortgage, or you can take out a mortgage now. Consider your circumstances and your plans to decide what to do.