Interest Rates Rising in San Diego

San Diego California home buyers should prepare themselves to pay higher mortgage rates in 2019, according to those in the real estate industry.

According to the California Association of Realtors (CAR), mortgage rates on a 30-year-fixed rate home loan will increase more in 2019 than they did in 2018. The association predicts the rise to be 5.2 percent, compared to 4.7 percent this year.

Freddie Mac and Fannie Mae, both government entities that buy and manage home loans from lenders, along with the Mortgage Bankers Association has similar predictions, although their numbers are show less increase. According to those forecasts, the average home mortgage rate on a 30-year-fixed rate mortgage will fall between 4.6 to 4.7 percent next year.

There is some good news in the forecast. Most state there won’t be a lot of movement in rates, offering stability. Rates will be gradually rising, according to Freddie Mac analysts. That provides time for potential homeowners to get into the market without a surprise sticker shock event at the last minute.

While the numbers point to similar interest rates, it is important to note that a potential home buyer’s rate depends on a lot of factors. Factors include your personal credit score and financial situation, lender fees and the housing economy in particular areas. Also, bear in mind that interest rates can vary some from different financial institutions and can change daily.

 

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