It was widely anticipated that mortgage rates would increase significantly in 2019, with Freddie Mac predicting that 2019 rates would climb as high as 5.1%, making it prohibitive for many people looking to buy homes and condos in Boston. But this week's 30-year fixed rate is 4.04%, .60 percentage points lower than the 52-week average and the same as the 52-week low. Freddie Mac has since dropped it's 30-year fixed mortgage prediction for the 2019 average to 4.3% and a small jump to 4.5% in 2020.
So what does this news mean for those looking to buy condos for sale in Boston? For most buyers, the lower interest rate translates to hundreds of dollars of savings a month, which could give them the flexibility to buy a 2-bedroom Back Bay condo vs. a 1-bedroom, or enable them to live in neighborhoods that meet all of their criteria instead of just some. But it also means more buyers will be flooding the market, so it's important for those looking to buy Boston real estate to work with an agent that can help them put together competitive offers and negotiate the best purchase price.
So will the low rates hold steady or will we see a jump in rates over the coming months? We'll find out for sure in a few short days - the Federal Open Market Committee (FOMC), otherwise known as "the fed," will meet on June 19th, 2019 to release projection materials which contain the potential direction of interest rates in coming years. If it indicates potential rate hikes this year or several of them in 2020, mortgage rates can be expected to rise. If not, rates will likely remain favorable for home buyers throughout the next 18-months.
Here are some additional articles that offer useful information about mortgage rates, and the impact the changes will have on those looking to purchase homes or refinance:
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