Outlook – 2017 Real Estate Market

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According to national realtor association interest rate for mortgage can be as high as 4.5% for this year. The anticipation of further increase is based on Fed rate hike of 0.75% in December 2016.Mortgage rates tend to move with the government's 10-year Treasury note, which serves as a benchmark for mortgages. Interest rates on the notes have already risen since Donald Trump was elected president and on signals the Fed would continue to tighten monetary policy.

 The Fed increased its benchmark interest rate by one-quarter of a percentage point on this first quarter 2017. Higher interest rate means paying more to the lender’s interest. Comparing average mortgage rate 8.5% for past 35 year, this is not to be panicked yet.

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