Where are the Rates Headed?

We got to sit down and talk with Rosa Gonzales of Highlands Mortgage, and she told us all about where the market is headed! Here is what we found out:

Mortgage rates are most likely headed upwards slightly by the second quarter of 2018. The Fed will likely raise rates a quarter-point in December, but it is important to keep in this doesn't directly affect mortgage rates. Long term rates are impacted by inflation and this has been in check due to a tightening labor market, but if inflation starts to take off rates will increase even more. Also, the Fed is reducing its purchase of mortgage back securities as we move into 2018 and the effects of this should push rates higher later in 2018. As far as interest rate effects on the housing market through next Spring, I really don't think there will be much. Mainly because there is a minimal difference in payment by an increase of .25% in interest rates. For example, on a $300,000 loan fixed for 30 years - the difference in principle and interest payment at .25% in rate is only about $45 per month. This isn't typically enough to dissuade someone from changing a desired purchase price range. However, by the end of 2018, with the Fed's reduction in purchasing mortgage-backed securities along with any signs of inflation, rates could move up more significantly. So, I think if someone is in the market for a home they would be wise to get it done now and through the early part of 2018. Purchase Plus! Clients interested in the following updates but don't want to come out of pocket for the expense? We can help! * Paint * Flooring * Kitchen/Bathroom remodel * Plumbing, Heating, AC or electrical * Roof replacement * Swimming Pool Pre-Approval Buyers can start the Pre-Approval process with two easy steps below or just give us a call at 972-985-4700. 1. Complete a simple online application at www.TeamGonzalez.net<http://www.TeamGonzalez.net>

2. Provide the list of items needed on the website.