What to Expect with 2019 Mortgage Rates

Last year, there was a total number of 4 rate hikes at the end of the third quarter, this is borrowing costs in General. This caused uncertainty as we are transitioning to 2019. According to The Central Bank, there could be two interest rate hikes this year.

The next rate hike may not actually happen anytime soon but for another several months.

Mortgage rates have fallen but it is about to head back up

If you’re planning to get a mortgage, now might be the best time as the rates haven’t reversed yet, after a sharp drop in December. Because of economic fundamentals, trade and political concerns mortgage rates will be back up.

According to analysts, it will reach its 5% peak which is currently at 4.7 percent. This will be happening in the following months; however, it will back down by the end of 2019.

So if you are planning to buy a house, it’s either now, or at the end of this year, the sooner you purchase, the less likely you are to have a higher home loan interest rate

For homeowners with fixed-rate mortgages:

If you have a fixed-rate mortgage there is nothing to worry about as it won’t get affected, it would however if it is scheduled to increase or adjust. Also if you have a home equity line of credit that is also scheduled to adjust. HELOCs are following a prime rate that follows the Federal Reserve’s benchmark.

What can you do if you are on a HELOC (Home Equity Line of Credit)

  • According to experts, the HELOC rate will climb up to 6.85 percent by the end of 2019.
  • You can refinance and choose a fixed rate loan to avoid rising monthly payments.
  • You can ask the lenders to freeze the interest rates that are tied to your unpaid balances.
  • Make sure you have updated copies of your credit report and check it on a monthly basis to avoid errors that could drag your score down.

North Carolina’s Mortgage Rates this 2019

North Carolina is one of the few states that have a low median sales price that is about $163,000, near the national average price. It is an unsaturated market, that’s why 63 percent of residents own their homes. Right now, homes are still affordable, but it won’t be much longer. It has appreciated by nearly 6 percent over the past year and it is expected to rise. Another factor is the drop in unemployment in the area, which allows more people in Wilmington ready to buy a house.

Good News for Savers!

Rates tied to the savings accounts has beaten inflation and banks are slowly lifting their deposit rates.

Are you planning to buy a house in North Carolina and you’re looking for Builders? Call Trusst Builder Group!

If you are thinking about buying a house in North Carolina and you are in the early stages of comparing builders, let Trusst Builder Group show you what we have to offer. Give us a call today at 910-371-0304 to schedule a consultation with our home builders in Wilmington NC.