The experts’ predictions? Expect mortgage interest rates to keep rising in 2019

Buying a home in Chicago in 2019 could get more expensive. That’s because organizations from the National Association of REALTORS® to the Mortgage Bankers Association expect mortgage interest rates to rise next year.

A recent story by The Mortgage Reports found that most real estate organizations expect mortgage rates to continue their rise even as 2018 turns into 2019.

How high will rates go? The Mortgage Bankers Association predicts that the average rate on a 30-year, fixed-rate mortgage will hit 5.2 percent in 2019, while Freddie Mac says it will rise to 5.1 percent. The National Association of REALTORS® is predicting that this rate will hit 5 percent during 2019.

The National Association of Home Builders, at least, predicts that this average will stay below 5 percent next year, predicting an average rate of 4.88 percent.

If you’re ready to buy a home, then, you might want to act quickly. It’s still possible to qualify for an interest rate under 5 percent on 30-year, fixed-rate loans today. And if you’re applying for a shorter-term loan, such as a 15-year, fixed-rate mortgage, you might be able to qualify for a mortgage with an interest rate under 4.5 percent.

How long this will be the case, though, no one knows.

Fortunately, there are plenty of good deals to be found today in Chicago. If you work with a REALTOR® who knows the neighborhoods in which you want to buy, you’ll increase your odds of finding a Chicago condominium or single-family home that is a perfect fit for you and your family.

Of course, you shouldn’t buy until you are ready. But the longer you do wait to enter the Chicago housing market, the higher the odds that you’ll face climbing interest rates as you apply for your mortgage loan.