Mortgage rates plunged after last summer’s Brexit vote, then soared after Donald Trump’s win on Nov. 8. After bottoming out at 3.41 percent last summer, the 30-year fixed settled in at 4.2 percent as of Thursday, according to Freddie Mac.
The volatility should ease in 2017, experts predict. They forecast rates in the 4.5 percent to 4.7 percent range by the end of the year. The prognostications:
- Greg McBride, Bankrate.com’s chief financial analyst, says the 30-year fixed will spend the year moving between 4 percent and 4.5 percent.
- The Mortgage Bankers Association predicts that the 30-year fixed-rate mortgage will rise to 4.3 percent this quarter and 4.7 percent by the end of 2017.
- The National Association of Realtors expects rates to climb to 4.6 percent at the end of this year.
At 4 percent, a 30-year mortgage for $200,000 will cost you $955 a month. At 4.5 percent, payments on a loan for the same amount jumps to $1,013.