Fannie Mae recently released their monthly forecast for housing. May’s forecast predicts 30 year fixed conforming mortgage rates with rates entering the 5% range in the second quarter of 2026.
While hearing that the 30-year fixed rate might hit the 5% range next year is music to many ears, there are some things I would keep in mind. For starters, the rates are NOT guaranteed – it’s just a forecast… although I’d rather see a forecast with mortgage interest rates trending lower instead of rates pushing higher. 😉
What’s important to keep in mind is that there are A LOT of home buyers who have been waiting for lower rates. As rates trend lower and the markets heat up, home prices will very likely move higher.
If there is a home that you want to buy and you qualify at today’s mortgage rates, I would probably buy that home at today’s price with the plan on refinancing when/if mortgage rates move lower. With that said, you have to keep in mind that again, there are no guarantees that rates will move lower so you have to be prepared for keeping the current rate/payment.
The improvement to interest rate may be offset by increased price in the home. Plus, buying sooner means that you get the opportunity to start paying down your mortgage balance, which creates more equity and you’re buying the same home at a potentially lower price than if you wait AND best of all, it means that you get to start enjoying your new home.
If you’re thinking about buying your next home, I’m happy to review scenarios for you and to create a game plan. Reach out to me for a quick 15-minute call or schedule more time, if you prefer.
25 years ago, I left my career in the title and escrow career to become a mortgage loan officer. I announced it on April fools day to the real estate agents that I was no longer going to be their title rep and that I was making the move to the mortgage side. Many were shocked as I had been in the title industry for 14 years and was pretty established. It was a big move! 
im Reppond passed away on November 11, 2024. I was so saddened and surprised to learn about this and I just think that I haven’t been ready to accept it. Jim had met me for lunch a couple of months earlier in Seattle and I’m so glad we took the time to catch up. It would be our last conversation. 
8:15 a.m. Today around 11:00 am PST, we’ll have the decision from the FOMC on whether they are making any adjustments to the federal funds interest rate. Odds are very strong (
Buying a home for your child is a major financial and emotional decision. It’s a generous gesture that can offer security, stability and help create wealth, but it’s essential to carefully weigh the pros and cons before making this commitment. Here are some important factors to consider: 
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