‘Tis the Season for Predictions


Filed under: Market Comentary


Can you believe that it is the last week of 2017? We hope that you had a great Christmas weekend, and enjoy the New Year celebrations with your family. At the end of each year, it seems to be the time when everyone is sharing predictions about the trends in the Near Year.

So, today I want to look at the predictions that we had at the end of 2016, to see how they measured up in 2017.

Interest Rates

The biggest prediction in the mortgage industry was that everyone thought that interest rates would go up anywhere from 4% to 5%. Interestingly, we are ending 2017 almost exactly where the year started, so there wasn’t that much of a change.

I pulled up a chart to compare the trends, and we are literally within a few points of where we started the year. For what it’s worth, everyone has been predicting higher rates for years. But, things haven’t changed as much as people anticipated.

Year End Predictions May Not Be Accurate

Just because an expert is sharing predictions for the New Year, doesn’t mean that it’s going to happen. These predictions may not happen in the way that people think they will play out.

It is interesting to see how things played out this year, especially with the changes that happened: a new president that really shocked the world and other industry shifts that have been happening. It makes sense that you would have thought that we would see a significant change in interest rates because of these events.

But, there have been no legislative changes that have impacted the industry, so business is going forward as normal. In fact, the real estate market is staying strong, making it a great opportunity for people to buy and sell properties.

So, the moral of the story today: watch out for these predictions, because they might not be what you think they are. Even when the information comes from seemingly reliable sources, no one knows exactly what will happen in the future. No one has a crystal ball! Only time will tell the changes and trends that we will experience in the industry.

At Franklin Loan Center, we are wishing you a great, safe New Year! We look forward to seeing you in 2018!


Franklin Loan Center | NMLS 237653
Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act, 4131316
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