Lower mortgage rates are sparking confidence in real estate experts about the future of the housing market. Realtor.com has revised its 2019 housing forecast to reflect a shift in attitude among economists who now that the year will end with mortgage rates averaging 4.5 percent – this is a full percentage point lower than what was previously expected.
Lower mortgage rates are countering high home prices, ultimately buoying home sales nationwide.
“The 2019 housing market is different than what we predicted in the fall of 2018, primarily due to an unexpeccted drop in mortgage rates” said Danielle Hale, Realtor.ccom’s chief economist. “This will create a slightly hotter, but still cooling housing market relative to the initial forecast five months ago.”
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.125 percent, 15-year rates are near 3.625 percent and the 5-year ARM is averaging 4.00 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.