Ever since the 2008 financial crisis that left the housing market in distress, mortgage rates have been affected. In the last year, there has been a drop in mortgage rates which have left economists and buyers wary of the housing market.
In the week of May 2nd, the 30-year fixed-rate mortgage averaged 4.14% as found by the lending company, Freddie Mac. The last four weeks have only shown gains, an event that has not happened since September.
Housing Market News Today – The 15-year fixed-rate Mortgage
The 30-year fixed-rate mortgage is not the only one that has seen change recently. Just recently the 15-year fixed-rate mortgage saw a slight decrease. While the rates do not include fees in addition to mortgage loans they have still seen a decrease. The 15-year fixed-rate mortgage used to be 3.64% and is now averaging 3.60%.
Housing Market 2019 Predictions – Mortgage rates will become ‘normal’
Since the financial crisis, the United States has been playing a game of catch-up. Sam Khater, Freddie Mac’s chief economist willingly participated in MarketWatch’s year-ahead predictions for mortgage rates which were published this last December.
Khater believed that the mortgage rates would become normal during 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 2019 to be the year of a ‘normal’ financial market Khater fears headlines and fear may ruin this possibility, “Because of all the negative headlines, it sometimes clouds our ability to look at the data. I think the ghosts of the Great Recession are lingering in our minds. We’re overly cautious and we keep looking for what’s going to wreck this thing.”
Even with all of this negative and fearful news, Freddie Mac has predicted no changes amongst a few rates. The forecast predicts that there will be no change in federal rates in both 2019 and 2020.
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