With mortgage rates and home prices rising, the housing market has become more hostile to home buyers in 2016. But in the next year, major factors that influence the housing market stand to change both for the better and the worse. Read on for what people looking to settle down into a new home can expect in 2017.
Mortgage rates will soar.
Mortgage rates have been on the rise for nine weeks straight, with 30-year fixed rates reaching 4.32 percent Thursday, up from 3.47 percent at the end of October. The increase is a result of the Federal Reserve’s decision to hike its interest rate target in mid-December and the surge in U.S. Treasury yields over the past several months—both of which mortgage rates follow closely.