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Lazerson's predictions: Mortgage rates, home prices and sales to go down in 2019
By Jeff Lazerson
What’s up with mortgage rates? Jeff Lazerson of Mortgage Grader in Laguna Niguel gives us his take.
Rate news summary
From Freddie Mac’s weekly survey: The 30-year fixed rate improved to 4.55 percent, down 7 basis points from last week. The 15-year fixed averaged 4.01 percent, down 6 basis points from last week. And, the Fed raised its prime lending rate to 5.5 percent earlier this week.
The Mortgage Bankers Association is on hiatus this week and did not report loan volume.
Bottom line: Assuming a borrower gets the average 30-year fixed rate on a conforming $484,350 loan, last year’s payment was $159 lower than this week’s payment of $2,469.
What I see: Locally, well-qualified borrowers can get the following fixed-rate mortgages at zero point cost: A 15-year FHA at 3.50 percent, a 30-year FHA at 3.75 percent, a 15-year conventional at 3.75 percent, a 30-year conventional at 4.25 percent, a 30-year FHA high-balance ($484,351 to $726,525) at 3.875 percent, a 15-year conventional high-balance (same as FHA) at 4.125 percent, a 30-year conventional high-balance at 4.50 percent, a 15-year jumbo (over $726,525) at 4.125 percent and a 30-year jumbo at 4.75 percent.
What I think:
How accurate were my 2018 predictions? And, what is to come in 2019?
Score is 4.5 out of 10 correct.
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