2018 Mortgage Forecast
2017 saw another strong year for the housing market, and 2018 looks to continue the trend. At Cambria® Mortgage™, we are grateful to be able to assist our clients from start to finish to find the best loans for their current situations. Read more about how Cambria Mortgage can assist you with your homeownership needs in the year ahead.
Often the first topic discussed when looking at a mortgage is the interest rate. Freddie Mac forecasts that the average interest rate for a 30-year fixed rate mortgage will rise slightly, however, it will remain near historical lows. Putting that into numbers shows the forecasted rate to be 4.40% in 2018 compared to about 4.00% in 2017.
With limited supply and continued demand, home values saw an increase of 6.3% in 2017. It looks like those values will continue to rise, however, at a slower pace than the previous year. The gradual increase in housing starts and the slight rise in interest rates put the forecasted growth at 4.9% for 2018. For existing homeowners, the increase in home values allows them to tap into the equity they have built in their homes to complete home improvement projects, to consolidate debt, or pay off student loans.
Home sales are expected to rise in 2018 but the increase is expected to be largely the result of new construction. There will still be a general tightness in inventory of existing homes, so expect multiple offer situations and above-asking-price sales. To help put yourself ahead of the competition, go into the home search with a pre-approval.
How Cambria Mortgage Can Help
While higher interest rates and more expensive housing impact the cost of home ownership, it does not mean that owning a home is not a smart investment. The advantages to owning a home can outweigh the slight increase in your monthly costs. Work with your financial advisor and your local Cambria Mortgage expert to determine the right mortgage for your current situation along with your future goals. The most important thing to do is act quickly while rates remain low. Call Cambria Mortgage today to get started on your pre-approval with no cost and no obligation.
Call Cambria Mortgage
To get started, call Cambria Mortgage at 952-942-0110 or visit CambriaMortgage.com. Our team of experts will provide personal, hometown service with sound advice and impeccable attention to detail at every step of the process.