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Maryland Mortgage Rates Projected to Rise Sooner, Rather than Later

Now that we are deep into July, with summer in full swing, there might be vague thoughts running through your mind about some potential real estate moves—but certainly not until the fall.  Right now in this very moment all most of us are thinking about is whether or not another chilled glass of summer-something-or-other is in order.  Maryland mortgage interest rates and what the folks in Washington, DC might be doing to affect them are not exactly what occupies an idyllic July afternoon…

Maryland Mortgage Rates Could Be On The Rise...
Maryland Mortgage Rates Could Be On The Rise…

But if you’ve been paying attention to any newscasts long enough to reach the dull-as-dishwater economic stories they throw in toward the end of the broadcasts, you may also have an inkling that the powers that think conditions are about to change.   And the evidence does suggest that mortgage rates in Maryland face a likely increase come fall, 2015.  If these vague suspicions do come to pass, and if you’re among those considering buying or selling a home in Maryland this year, now should be the time to stop “thinking” and start “doing”.

Exhibit A for that proposition comes from one Michael C. Fratantoni, who happens to be the Chief Economist of the Mortgage Bankers Association (MBA).  When he recently spoke at the National Association of REALTORS® office in Washington, he made no bones about it: mortgage rates will continue upwards, with a first significant Fed hike likely in September.  September!  The 30-year fixed mortgage, which we all know has lingered at historic lows—below 4%—for several years, is likely to hit 4.4% by the end of 2015 , then move beyond 5% next year.

It’s enough to stifle any thoughts about that frosty beverage.

The good news for Maryland homeowners planning to list is that Fratantoni doesn’t believe any of these factors will keep the nations’ buyers away.  After a pretty lackluster 2014 performance, the MBA forecasts a 14% year-over-year increase in purchase-money mortgage originations in 2015 – and nearly 9% in 2016.  Nationwide, incomes are also expected to rise, and with new household formations on the rise, the national real estate market looks to remain in fairly good balance.

While it seems there’s no instantaneous need to drop all your summertime activities to rush your home onto the market, with mortgage rates in Maryland expected to rise sooner rather than later, it’s certainly worth making it a priority to give our team at ExecuHome Realty a call as soon as possible at 443-632-3800… it’s simply never too early to start planning for success in your Real Estate Transaction.   After we talk about a game plan, there will definitely be ample time to finish enjoying that delightful chilled summer beverage.


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