Many industry analysts expect the average rate for 30-year fixed mortgages to hit 5 percent in 2019.
Currently, it’s around 4.7 percent.
The 10-year Treasury yield — which mortgage rates tend to follow — could rise close to 3.5 percent before falling back down to 2.45 percent by the end of 2019, McBride says.
Are CD rates going up in 2019?
Even with their relatively bleak outlook for 2019, CD rates have historically increased faster than savings account rates. The average 1-year CD rate increased 0.26 percentage points from the Dec. 2015 Fed rate hike to Dec. 2018. Meanwhile, savings accounts have only seen an increase of 0.02 points.
Are mortgage rates going up in 2019?
Mortgage rates will remain low
Fannie Mae, Freddie Mac and the National Association of Realtors all predicted that mortgage rates would rise through 2019. Instead, mortgage rates have tumbled.
Will the Fed raise rates in December 2018?
The Federal Reserve lowered the fed funds rate to 2.25% in July 2019. It had just raised it to 2.5% in December 2018. Between December 2015 and December 2018, the Fed had been gradually raising rates. The 2015 increase was the first one since June 29, 2006.
Why are interest rates going up?
When interest rates go up, it becomes more expensive to take out a loan. By encouraging interest rates to rise and fall at certain times, the Fed is trying to stabilize prices, create jobs, and keep the economy secure. Understanding why rates might rise and fall, can help you make more informed financial decisions.