At the beginning of the year everyone thought rates were going to go up. That just hasn’t happened. Since November of 2016 interest rates haven’t moved up or down more than .3%. With the best interest rates between 3.1% and 4.0% APR, mortgages are still very affordable for most people. While some people would like to speculate rates rising back to the double digits of the 1980’s, the current trend shows otherwise.
Since 2008 the federal government has been subsidizing mortgage rates, this trend is not likely to change as big banks have no interest in earning single digit rates on their investments. Part of the reason financial analysts were so sure rates would rise this year was that 2017 marked the beginning of bigger plan to take Fannie and Freddie out of conservatorship. Turning these entities back into public companies would require that rates rise to attract private investment.
To date, no one has come up with a plan on how this will happen without destroying the housing market. I talked a lot about this in other blogs as it relates to a similar problem that Japan faced in 1991. Simply put rates may never go up, now that we’ve duped the American taxpayers into being the bank.
If you have been waiting to refinance or still have mortgage insurance you should take a look while mortgage rates are still low. Call me for custom options at 801.599.5363 today or get a Quick Quote today!