The recent drop in mortgage interest rates is helping buyers enter the market, and new research finds how much they should expect to pay in housing costs.
Using the mortgage rate in the first week of January (4.5 percent) and the earlier, projected rate (5.0 percent) for the same time, the National Association of Realtors (NAR) finds that the national monthly payment is $1,208 with a 4.5 percent rate, and $1,280 for 5.0 percent. The NAR predicts that the 30-year fixed rate mortgage will average 4.9 percent in 2019 and 5.2 percent in 2020.
Mortgage rates are starting off 2019 at very good levels. In fact, mortgage rates declined, starting the new year with the 30-year fixed rate mortgage dipping to 4.5 percent last week from 5 percent a month ago, according to mortgage finance provider Freddie Mac. After a year of gradual increases, mortgage rates are declining. Stock market volatility, global trade worries and the government shutdown are pushing rates down to their lowest levels since August.