Will Interest Rates Rise in 2017?

Mortgage Interest Rates in Maryland, Virginia, & Washington, DC

One of the things that you’re going to want to look into before you make the decision to take out a mortgage and buy a home is what the interest rates are going to be like in the foreseeable future. Knowing whether interest rates may go up or down can have an effect on whether you decide to buy a home now or in the future – or whether you decide to go with a fixed interest rate or a variable interest rate.

Will Interest Rates Go Up?

At the moment, mortgage rates are still favorable. This means that if they are expected to go up, you’ll probably want to try and lock into that favorable interest rate, especially if you’re planning on getting a fixed-rate mortgage. There are a number of factors that play into where mortgage rates may be in the future. A good way to predict future mortgage rates is by looking at how rates trended this year as well.

In the beginning of 2016, interest rates stuck around the four percent mark. Towards the ¬†middle of the summer, rates fell by half a percent. The fear concerning the economy in the wake of Brexit as well as this year’s election caused the rates to stay where they were in the summer. The Fed also decided to delay its decision to increase short-term interest rates because economic growth had yet to justify an increase.

There’s also a bit of uncertainty surrounding the results of the election. In fact, many people fear that his policy proposals will have a negative impact on the country’s economy, which actually resulted in interest rates having their worst day in three years by reaching a seven month high following the end of the presidential election. A particular worry among investors is that more government spending could hurt mortgage rates.

Overall, many experts believe that mortgage rates will rise somewhat over the course of 2017. It’s almost impossible that they don’t just because of the fact that interest rates are historically low at the moment. Many experts believe that 15-year rates will be in the high three percent range, while 30-year rates will be in the low to mid four percent range. This is, of course, assuming that nothing drastic happens with the economy over the course of the next year.

Get Pre-Approved for a Mortgage in Marlyand Today

Interest rates are most likely going to go up throughout the next year, but only because of how low interest rates are at the moment. The increase in interest rates shouldn’t be too dramatic according to most experts – although there are a number of different factors at play. For more professional advice concerning interest rates or for advice in regards to mortgages in general, be sure to contact Alex Echeandia today.

 

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