What Will Rates Do in 2018? | December 30, 2017

Rates remained level over the course of a relatively slow news week to end 2017.  Many people want to know what will happen to rates throughout 2018?  My best guess is they will remain relatively the same, it is likely they will not decrease or increase dramatically.  Skeptics would like to believe we are on the verge of a rising rate market and there is a chance they will jump.  Is that likely to happen...?  Nobody can tell for sure, but what I do know is these same skeptics have predicted a rising rate market for the last 4 or more years.  In order for the economy to support rising interest rates it will require one critical component.  If you are looking for an indicator to keep an eye on, my suggestion is to pay attention to whether or not wages increase on the jobs being added to the economy.  The job market has improved drastically over the last few years.  However wage growth has remained stagnant, and without the ability for everyday people to have more discretionary income it is not realistic for the economy to surge in the right direction.  Buying a home remains one of the best ways a person or family can increase their wealth.  While our economic environment continues to support historically low interest rates, let’s make it our purpose in 2018 to educate our clients on how we can help them come up with the right strategy to support their short term and long term financial goals.