Despite the recent spikes, mortgage rates are still well below pre-recession levels, as well
Houses are projected to become more expensive in the coming years, but don’t expect a price spike.
The International Business Times says that various forecasts expect a slowdown in home price growth. A Realtor.com report predicts a 3.9 percent increase in 2017, down from 4.9 percent in 2016. Zillow predicts 3.6 percent growth next year, compared to 4.8 percent this year.
While mortgage rates have risen recently, going from 3.47 percent in late October to a current rate of 4.3 percent, the IB Times says the increases aren’t as dire as they are made out to be.
Even if the Fed’s rate rises three more times next year, as the central bank expects, the 30-year mortgage rate has a long way to go to reach prerecession levels of up to 6.73 percent in July 2007, and 6.8 percent in July 2008. So in the grand scheme of things, the rise in mortgages may be a bit overhyped.