What Will Be the Interest Rate for a 30-Year Fixed Mortgage by 2019?

Mortgage Loan AgreementHome buyers in the US should decide whether they want to avoid paying a higher interest rate on a 30-year fixed mortgage, which would increase to 5% next year based on an industry forecast.

If you’re planning to buy in Utah, a housing loan in Ogden may be a good choice as early as now before rates increase in the next two years. By 2020, the interest rate will slight stay the same at 5.3% for the same mortgage.

Estimated Growth

Despite the estimated growth in mortgage interest, the increase doesn’t seem too bad if you look at it from the angle of monthly payments. A $300,000 loan for this year with a fixed interest of 4.6% entails a $1,537.93 payment per month.

By next year, the same amount will involve a monthly installment worth around $1,610.46. The Mortgage Bankers Association provided the industry estimates, and rates may still change depending on the market’s movement.

When choosing a mortgage lender, consider the benefits of borrowing money from a credit union. The chances of loan approval could be higher, or they may offer lower rates than banks.

Some buyers, however, have the advantage of choosing more properties if they live in a state with a large price inequality for homes.

Price Gap

A broad price inequality for residential properties generally means that buyers have more choices, even if they have a limited budget. Buyers in New York have the most options, as prices in the state range from at least $65,000 to almost $1.1 million on average.

In Michigan, home prices cost between $33,000 and $420,000, while those in Connecticut range from $125,000 to more than $1 million.

A home purchase this year may be a good decision before mortgage rates increase in the near future, but it requires careful planning. How much interest are you willing to pay for a housing loan?