Tuesday, August 22, 2017

Detailed 2018 Forecast on Housing Market and Interest Rates


The housing market, interest rate, and economy all remain vital cogs in the machine.


For 2018, it's time to start looking at how the year will shape up and what's coming America's way. Will the economy falter leading to a housing market crash or is it going to sustain itself? This article is going to provide a clear-cut forecast for 2018 based on underlying factors.

This is a detailed look at what will take place, how the market is responding right now, and how it will impact the economy in its entirety.

Housing Market Will Remain Firm

The housing market provides hints as to the general economy and how it's doing. 2017 has been a decent year as the economy continues to grow and 2018 appears to be looking positive. The housing market tends to remain strong because people buy and sell houses unless the bottom falls out.

In this regard, the real estate market should sustain itself and stand firm at the very least.

Interest Rates Expected To Move Upwards

What about the interest rates?

The interest rates saw a sudden increase during the election season as it wavered with each swing between Trump and Clinton. While election season is in the past and a bit of stability has come in the White House, a lot of clarity has also made its way into the picture.

The interest rates have been around 3.5%-4.25%.

However, 2018 is going to add a new wrinkle into the mix as rates will likely rise. According to economists, rates might balloon up to 4.75-5.75%. Most of these decisions are based on the 30-year treasury bond yield, and they are sitting at 3%
If treasuries increase to 4% or more, the mortgage interest rate should rise to around 4.75%-5.75% as mentioned.

Bullish Economy

What about the economy? This can become a meaningful indicator for the housing market. If the economy starts heading in the right direction, housing is likely to follow.

Signs remain strong heading into 2018. Most economists are stating the economy will grow making 2018 a good time to invest in residential real estate.

Thanks to our friend and financial advisor in Los Angeles, Samuel Rad, for his insight on 2018 forecast on housing market and interest rates. Sam is a Certified Financial Planner in Los Angeles and has a wide range of knowledge about personal financial issues. He has helped many people meet their financial goals.

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