Mortgage Rates In 2019: What To Expect

While home prices have stayed relatively steady over the past year, mortgage rates have been rising more rapidly.  There are currently many factors at play that make the mortgage interest rates uncertain in the near future.  The federal reserve pausing the federal fund rate, the recent government shutdown and the trade war with China all contribute to the uncertainty moving forward. Potential home buyers should pay close attention to the mortgage rates and what the possibilities are in the future.  A small bump in interest rates can severely reduce your purchasing power when trying to close on a home.  So what should you expect in the future and when is the best time to lock in a rate?  The Reeves Team is here to help uncover the truth.

What could make the rates to up?

There are quite a few situations in which the mortgage interest rates could increase for the rest of the year.  Right now a typical mortgage rate is around 4.5% if you have excellent credit and are buying an average home.  It is easy to think that because the federal reserve decided to pause rate hikes that the mortgage interest rates will stay steady as well. Unfortunately, we know that is not the case.  Currently rates are about as low as they have been for the past 9 months, this is due to soft demand for mortgages in the last couple of months.  However, the most recent homes report came in and surprised many with an increase in mortgage applications and home purchases.  Due to the recent increase in demand its probable we will see rates increase in the short term.  The stock market is also surging back after a huge dip in the month of December, this is instilling confidence in potential home buyers and could also push the rates up.  It also looks like a China Trade deal may be on the horizon which would more than likely increase economic activity and put further upside pressure on mortgage rates. 

What could make the rates go down?

If the economy falters in a major way the housing market would suffer.  If less people have money to purchase homes there will be fewer mortgage applications.  If there are fewer people applying banks will need to compete harder for the applicants and rates will drop.  If the economy gets really bad and the federal reserve actually starts lowering rates instead of maintaining the current trend then we would really see mortgage rates drop through the floor.  So this one is pretty straight forward, if the economy slows, mortgage rates will go down. While earning season is upon us and we are seeing slower growth from some of the biggest companies in America, they are still growing.  Only time will tell if we see a recession in the United States in the near future.

What do the experts think?

Many different agencies forecast mortgage rates each year.  Last year the average was around 4.8% for the end of the year and that was pretty much dead on.  These agencies get it right more often than they get it wrong.  So what do they see happening in 2019?  They see mortgage rates rising slightly but not jumping in a major way like they did in 2018.  The average of all agencies is 5.17%  The National Association of Realtors predicts 5.3% so they are slightly more optimistic about the housing outlook than the consensus but still close.  The most bullish prediction comes from Realtor.com who is predicting 5.5% at year end.  The lowest prediction comes from Fannie Mae at 4.8%. As you can see multiple agencies who are experts in the field don’t see any significant drop off in rates from where they are presently. 

What should I do if I want to purchase a home in 2019?

If you are looking to purchase a home in 2019 now is as good of a time as any to lock in a mortgage rate.  Rates around 4.5% are lower than they were at the end of last year and have a better chance of going up than they do down.  Even if you look at the most bearish prediction from all of our experts the rates would still be up a quarter of a point from where they are now by year end.  We have a lot of year left and there are lots of possibilities but if you believe in the strength of the U.S. economy then its a good time to lock in a mortgage rate.

What do you think?  Do you agree with our assessment that now is as good of a time as any to lock in an interest rate?  Or do you believe we are in for a recession in the near term?  Let us know in the comment section below. 

Extending Your Pool Season In Gilbert Arizona

Its never to soon to begin thinking about extending your swimming season in Arizona.  Gilbert Arizona is an amazing place to live and during the winter months it is one of the best places on the earth.  However when summer rolls around it can be challenging.  The extreme heat drives away the snowbirds and traps residents indoors.  One of the best ways to cope with the Arizona heat is to own a swimming pool.  If you have a swimming pool in your back yard you can find reasons to go outside during the summer months and also provide some entertainment when there isn’t much else going on.  

One problem with owning a pool is how short the actual swimming season can be.  It takes a long time to for the pool to heat up naturally, especially if you have a deeper diving pool.  For larger pools it can be late May or even June before the pool if comfortable for many to swim in.  Another problem many encounter is that once the pool is swimable it isn’t long before it heats up to an uncomfortable temperature.   

These issues leave the ideal swimming season in Arizona to only a few weeks of the year.  Here at The Reeves Team we are here to help you get the most out of your pool.  With only a few small tweaks you can get in your pool earlier, keep your pool temperature reasonable during the peak of the heat, and stay in your pool longer so you can enjoy your investment as long as possible. 

Use a Solar Pool Cover

Solar pool covers can be purchased for less than 100$ and they can make a huge difference.  These Solar covers or “blankets” are designed to heat up during the day and also retain the heat at night. These solar covers can be trimmed to fit any size pool and will add weeks or even months to the usable time of your pool season.  A side benefit to these covers is that it will also help keep your water from evaporating as quickly, so who knows you might even be saving money by purchasing one of these.

Keeping Your Pool Cool During Peak Summer

Another problem many of our clients talk about is that the pool becomes so hot during the peak season that it is not enjoyable. There are a couple of quick tricks that will help you keep that pool reasonable during the hottest months.  The biggest tip is to run your pool filter at night.  If you run the filter at night when the air is cooler it will help the water to evaporate and make the pool more enjoyable when you enter it the next morning.  Another practical tip is if you are planning on having a party and want the pool to be refreshing dump some ice in it.  It may sound strange, but once you get past the silliness of it, it makes sense doesn’t it?  Just be aware, its going to take a decent about of ice to make a dent in the temperature if you have a large pool. The last tip to help cool down the pool is to install a water fountain in you pool.  Moving the water will keep it cooler and more refreshing.  In addition to installing a fountain a pool slide or waterfall will also accomplish the same thing.  Adding these features will also make your pool more fun and add to your property value.

Do you have any other tips for extending your pool season?  Let us know in the comments below!