Since the 2008 financial crisis that left the real estate market struggling, mortgage rates have been hit. Over the past year, there has been a drop in mortgage rates that has left economists and buyers alike wary of the housing market.
In the week of May 2, the 30-year fixed rate mortgage was on average 4.14%, according to loan company Freddie Mac. The past four weeks have shown only gains, an event that has not happened since September.
Current Housing Market News – The 15-Year Fixed Rate Mortgage
The 30-year fixed rate mortgage isn’t the only one that has changed recently. Just recently, the 15-year fixed rate mortgage has seen a slight decline. Although the rates do not include fees in addition to mortgages, they have still fallen. The 15 year fixed rate mortgage was previously 3.64% and is now 3.60% on average.
Housing Market Forecasts 2019 – Mortgage Rates Will Turn ‘Normal’
Since the financial crisis, the United States has been playing a catching game. Sam Khater, Freddie Mac’s chief economist, volunteered to participate in MarketWatch’s forecast for mortgage rates that was released last December.
Khater believed mortgage rates would return to normal in 2019. Clean-up efforts have been underway for years and Khater, like many analysts, predicted a smooth and balanced financial market in 2019.
Although analysts predict that 2019 will be the year of a “normal” financial market, Khater worries that the headlines and fear will ruin this possibility, “Because of all the negative headlines, it sometimes clouds our ability to examine the data. I think the ghosts of the Great Recession linger in our minds. We are too careful and we keep looking for what will destroy this thing. “
Even with all of this negative and scary news, Freddie Mac didn’t predict any change among a few rates. The forecast is that there will be no change in federal rates in 2019 and 2020.
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