2018 is the Projected Year of Interest Rates Rising and Homes Still Appreciating

The long window of low rates will remain open in 2018, but may be slowly closing. Expect a slow, moderate ascent, with rates staying in the 4 – 5% range in 2018. Now is the time to buy a home, with rates so low and prices continuing to climb.

The story may change in 2019 and beyond:

  1. Fed members anticipate future rate hikes.
  2. The Fed notes made positive statements about the economy, which foreshadows additional rate hikes:
    • The Fed raised its estimate for GDP growth.
    • Citing tax reform as a driver, more overall economic growth is predicted.
    • The Fed lowered its estimate for unemployment in the coming year, and it’s already at its lowest level in 15 years.
    • Inflation will remain tepid next year, suggesting only two rate increases in 2018.

Call me for help getting into a new home!

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