San Diego, CA (PRWEB) May 27, 2014
LoanLove.com is a borrower advice website that strives to empower home loan borrowers with first class information, valuable resources and connections to top rated industry professionals. Their articles offer in-depth knowledge in an easy to understand package which has quickly turned the website into a trusted destination for current news and expert loan advice. The latest article featured on Loan Love continues to help borrowers make the best decisions regarding their loans by answering the question “Will interest rates keep rising?” and giving a forecast of where rates are expected to be a few years from now.
This new Loan Love guide says, “As the calendar flipped forward to welcome in 2014, financial forecasters far and wide were predicting that interest rates would begin a steady climb as the year wore on. Now, nearly six months into the new year, the prediction has come mostly true—though not at a pace most would have predicted. Even without any dramatic jumps, the writing still seems to be on the wall, leaving most prospective homeowners wondering, will interest rates keep rising?”
Loan Love continues: “There are numerous predictions of interest rate forecasts, with most focused on the idea that historically low rates enjoyed in recent months are not sustainable as the economy continues to recover. Therefore, the longer-term forecast would seem to suggest a rise in interest rates over the next five, or even 10, years. However, a few analysts point not to the past year, but to 40 years of historical data in predicting where interest rates are headed for 30-year mortgages. When this data is closely examined before calculating a forecast, there is an overwhelming probability, slightly over 90 percent, that the rate will actually fall in five years, based on December 2013 to December 2018 comparisons.”
The same forecasting process suggests there will be a 9.2 percent probability interest rates will be higher and a 0.4 percent probability that rates will stay the same or at least be at the same point exactly five years from now. What does that mean for those seeking a good rate for their mortgage loan right now? The article explains that most short-term interest rates forecasts have rates rising to the 5 percent, or even 5.5 percent, mark by years end. Because of this, most borrowers would be wise to lock in their rate as soon as they set their closing date.
For more information regarding rising interest rates and the economy, click here to read the full article at LoanLove.com.