What Are the Experts Saying about Mortgage Rates?

expert mortgage ratesWhat is your opinion on what effect mortgage rates will have on the housing market this year?  Keeping Current Matter posed this question to some experts in the mortgage field.  Their opinions are listed below.  Do you agree or disagree with these experts?

Courtesy of Keeping Current Matters March 2017

Mortgage interest rates have risen over the last few months and projections are that they will continue their upswing throughout 2017. What impact will this have on the housing market? Here is what the experts are saying:

Laurie Goodman, Co-director of the Urban Institute’s Housing Finance Policy Center:

“In 1984, 1994, 2000, and 2013, every time we have rate increases, we have increases in nominal home prices. We expect this to be more pronounced, as there is a big demand-and-supply gap at the present time.”

Scott Anderson, Chief Economist for Bank of the West:

“The tightening labor market, rising wage growth, high levels of consumer confidence and a millennial generation with a pent-up demand for housing should allow the housing market to weather the storm of gradually rising interest rates.”

Ivy Zelman in her latest “Z” Report:

“Although we strongly believe that the housing supply-demand imbalance for single-family homes will continue to drive above-average home price appreciation, just as falling mortgage rates aided pricing power on the margin in recent months, we expect the opposite refiancing 3effect to become evident in the coming months. As such, we project year-end home price inflation of 4.8% for 2017 and 4.1% for 2018.”

Bob Walters, President & COO of retail mortgage lender Quicken Loans:

“A modest increase in mortgage rates won’t have much of an effect on home purchases. A buyer may need to slightly re-evaluate which homes they can afford, but it’s not likely to make an impact on qualifying, in most cases.”

First American Chief Economist Mark Fleming:

“Our survey data shows that mortgage rates would have to be significantly higher to have any meaningful impact. The house buying power that borrowers have, even with rates below five percent, still remains historically strong.”

My question is why wait?  We all know mortgage rates will increase so rather than take your chances with a higher interest rate, why not get qualified today and buy that new home at the lower mortgage rate so your mortgage payments are as low as possible?  I am here to help!

Remember it is always toasty in Naples and you deserve your piece of Naples sunshine and a new home at the lowest interest rate possible!

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