Whenever there is a change in the White House and a new administration is taking over, it can affect our economy and housing market. Currently, the Trump Administration does not appear to be having much impact on the economy, housing market, different types of home loans, and mortgage rates.
At the end of 2016, interest rates were slightly higher, and the highest since 2014, but they are still considered rather low, compared to rates five or ten years ago. Some loan products still have rather favorable rates around 4%. However, rates are expected to slowly increase throughout the year, and, by the end of March, could average between 4.3 and 4.5%.
Types of Home Loans
While this might not seem like that much, consider the interest is being calculated on a major investment that can cost several hundreds of thousands of dollars, so an increase of 0.3 to 0.5% easily translates to thousands of dollars in interest over the life of the mortgage loan.
Beyond March, some financial experts expect rates to continue to move up, as economic conditions continue to strengthen, and, by the end of the year, average around 4.6%. Other experts are a little more reserved and anticipate rates will not exceed 4.5%.
If you are considering purchasing a new home or refinancing an existing mortgage, now would be a good time to do so, before rates increase again. Contact Elite Financial at (800) 908-LEND (800-908-5363) or 805-494-9930 to find out the current rates and what loan programs you qualify for today!