We have enjoyed our historically lowest mortgage rates for some time and after seeing a small spike in the interest rate, now we’re seeing fluctuations in both directions. I became curious as to why? Whether its temporary spikes from some optimism in certain economic sectors or downturns due to the government shut down? Although no one can accurate predict the future, a number of mortgage forecasts for 2019 based on expert opinions and close observation of the market indicate the mortgage rates are only going up in 2019. Now the rates are slightly over $4.2%. The bad news is that this is could be the new low for mortgage rates for coming years. The glory day of 3.3%-3.5% mortgage rates for fixed 30 year term appears to over.
Just to put things in a perspective, look at below graphs. This is where we have been with mortgage rates. It has been unprecedentedly low.
What does this mean for Boston condos for sale in 2019?
This new and continuing rates hike will decrease the Boston condo for sale demand. This could slow Boston condo for sale price hikes but according to some Boston economist, the prices are still expected to increase somewhat still in the next couple of years in downtown Boston Low supply will not magically turn upside down although we do see some more construction of town homes in various suburbs. You may not see bidding wars like we have seen like in 2015 and 2016.