If you have been contemplating buying a home, this is valuable information to have! Mortgage rates have plunged and housing forecasts predict home loans to surge.
- The biggest drop in mortgage rates in the last decade
- 30-year fixed-rate mortgage rate averaging 4.08%
- Declined rates have created a mortgage demand among home buyers
- 18.6% jump in mortgage applications last week due to home buyers trying to lock in lower financing cost
- $1.2 trillion in home lending predicted this year by Mark Watson of iEmergent, a mortgage advisory firm
- Predicted best year for lending since 2005
In January the Federal Reserve announced no plan to raise short-term key interest rates this year due to a slowing economy forecast. Sam Khater, the chief economist for Freddie Mac says, "The benefits of the decline in mortgage rates that we've seen this year will continue to unfold over the next few months due to the lag from changes in mortgage rates to market sentiment and ultimately home sales."
(Below are charts of old mortgage rates vs. new mortgage rates)
https://magazine.realtor/daily-news/2019/04/09/drop-in-mortgage-rates-could-put-market-in-2005-territory By Dillon Landfried - Apr 17, 2019