Industry experts anticipate mortgage interest rates will rise in 2018 as CoreLogic predicts the Federal Funds rate will rise to 4.7 percent by the end of next year.
CoreLogic Chief Economist Frank Nothaft explained increases in mortgage interest rates could discourage sellers from selling their homes, further tightening housing availability, per HousingWire. However, Nothaft predicts home prices will rise another 5 percent in 2018, increasing home equity values.
The rise in prices will not bode as well for the mortgage market, which will continue to see decreases in refinance originations. But refis will not fall off completely as Nothaft explained many FHA borrowers will seek to refinance their mortgage into a conventional loan in order to cancel their mortgage insurance.
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