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Higher Mortgage Rates in SW Florida? Projections Tend to Agree. 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 all most of us are thinking about is whether another chilled glass of summer-something-Higher Mortgage Rates in SW Florida? Projections Tend to Agree, Naples, Bonita Springsor-other is in order. SW Florida mortgage rates and what the folks in Washington might be doing to affect them are not exactly what occupies an idyllic July afternoon.
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 conditions are about to change. And the evidence does suggest that mortgage rates in SW Florida face a likely increase come fall. If your vague suspicion does come to pass, and if you’re among those considering buying or selling a home in SW Florida this year, now should be the time to stop “thinking” and start “doing”.Higher Mortgage Rates in SW Florida? Projections Tend to Agree, Naples, Bonita Springs
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.
Higher Mortgage Rates in SW Florida? Projections Tend to Agree, Naples, Bonita SpringsThe good news for SW Florida 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 origination 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.
Higher Mortgage Rates in SW Florida? Projections Tend to Agree. 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 SW Florida expected to rise sooner rather than later, it’s certainly worth making it a priority to give me a call this week. After that, there will definitely be ample time to finish enjoying that delightful chilled summer beverage.

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