This year has been a good one for prospective borrowers. However, this doesn’t mean the general climate is a favorable one, as mortgage rates can fluctuate quite a great deal. Moreover, these rates can change on a very short notice, so nobody can actually tell what’s going to happen on long-term.
If you intend to lock in at a fixed rate, you should probably act very quickly. If you wait to see what the evolution of mortgage rates is going to be in 2017, you could lose the game. It’s true that you could also win, but nobody can actually tell you what to do and when to act, in order to obtain the best possible deal on your mortgage. Industry insiders may be able to provide you some useful hints, but they can’t have accurate information, so you should take everything you hear with a grain of salt.
The unexpected result of the presidential elections, and Trump in office may also influence mortgage rates in 2017. Elections are always followed by unpredictable evolutions of various markets and industries. This is why it’s very difficult to foresee the trend, at least for the first half of 2017. Besides, unforeseen events could also have an influence on the real estate market. This is why predictions are almost impossible to make. It is possible that the current trend lasts for a little longer, being in favor of those who intend to buy a property. On the other hand, it is also possible that rates will head north sooner rather than later. Prospective borrowers should trust their gut, and take action when they find it the most appropriate. Some may even consider short term bridge or hard money loans. Only time will tell whether they were right or wrong to take action at that specific moment.
The evolution of mortgage rates in 2017 is going to be influenced by multiple factors. Economic growth is one of these factors, so everybody is eager to see the performance of the last months of 2016, in order to be able to predict what’s going to happen on the real estate market.
As a matter of fact, you can estimate the mortgage rates evolution by reviewing this year’s trends. You’ll see that the rates were more or less stable in the beginning of the year. The bottom was reached in June-July 2016, when mortgage rates were at their low. You may also take a look into the past five years or so, in order to see whether you can determine a pattern to help you make the best decision. Some real estate experts anticipate rates are going to be stable for a while longer, but you can never be 100% sure they are right. History has proven them wrong at least once. If you remember the last major crisis, you can easily see that nothing is for sure. All we can do is to keep an eye on the economic news and on the real estate market, and hope we are going to be able to take action fast enough to lock in a great rate.