The end of 2018 is setting the scene for 2019 – a housing market battling on several fronts According to Zillow, the rising mortgage rates and devastating natural disasters seen this year will carry on into 2019, along with other challenges.
Mortgage affordability is expected to take another hit next year as rates continue to climb. Zillow predicts 30-year fixed rate mortgage to reach 5.8 percent. The impact of costlier mortgages will not only impact home buyers but renters as well. As affordable homes grow scarce, demand for rental housing will ultimately grow, leading to an increase in rent costs.
Nearly 15,000 homes were destroyed by the California wildfires in the past two months and thousands more in massive storms in other parts of the country. Extreme weather is likely to continue to take its toll in the coming year.
Today, conforming no-point 30-year fixed mortgage rates are averaging 4.875 percent, 15-year rates are near 4.25 percent and the 5-year ARM is averaging 4.5 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.