Mortgage Rates on the Rise: Where are we headed?

Mortgage rates are finally starting to tick up, and it's no surprise. The economy is doing well, interest rates are rising and unemployment has fallen. So what happens next?

It's likely rates will continue to go up a little more.

The reason rates have gone up is that the economy is doing well. That's not a bad thing, but it means there may be more upward pressure on rates in the future.

So what does this mean for you? If you are looking to buy or refinance a home and plan on using an FHA loan, now might be a good time to get started. You could still get some great interest rates if you act quickly!

But also keep in mind that mortgage rates typically move in lockstep with each other — meaning if one rate goes up, they all tend to go up together (and vice versa). 

So even if your mortgage rate doesn't change at all from this point forward, it could still increase slightly over time as other lenders make changes based on their own economic forecasts going forward.

I think things will slow down just a little bit, but they won't slow down dramatically.

As interest rates increase, it's likely that the housing market will slow down just a little bit. But it won't slow down dramatically. We're still at historic lows compared to other countries and even historical norms.

The housing market isn't going to crash and prices aren't going to drop.

The housing market isn't going to crash and prices aren't going to drop. In fact, there is no reason for them to do so. 

First off, the economy is strong and the housing market is still very healthy. Secondly, mortgage rates aren't going up all that much—they're just moving from 4% back up to 5%.

We should be cautiously optimistic in our outlook for the next year or two.

It’s a good time to be an investor. The economy is strong, and mortgage rates are low. However, there are some risks that we need to be cautious about. 

The financial markets may drop further, and/or interest rates could rise more than expected. We don't know what will happen in the future; therefore it's important not to be overconfident in our outlook on things like these housing prices or stock prices.

Here are some ways you can be cautiously optimistic:

• Make sure you have a plan for your money.

• Make sure that your goals are reasonable.

• Set aside some funds for unexpected expenses.

Mortgage rates are likely to keep on increasing in the near future.

The Federal Reserve has signaled that it will continue to raise rates in the near future and this is expected to continue happening over time. This means that we're likely to see a rise in all types of loan rates.

The increase in these types of interest rates will not be uniform across every market; instead, they will vary based on local conditions such as job growth and home prices. 

Take this as an example: 

During periods when unemployment is high or housing demand falls off significantly (such as during recessions), lenders may lower their standards to attract customers by offering low credit scores or reducing qualifications such as income verification requirements for applicants with good credit scores but no job history yet.

Conclusion

It's important to remember that mortgage rates are still at historical lows, so it's not like this is something we're going to have to deal with for years. As long as you're prepared for higher rates and don't over-extend yourself, everything will be just fine.