Projected Interest Rates 2014 – Loan Love Gives Their Forecast

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Loan Love’s new interest rate forecast gives some insight to how rates will look in the coming year. is a borrower advice website that provides detailed insights into the mortgage industry in a fun and entertaining way. The team at is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals and has the mission of helping consumers and borrowers to obtain the latest information on mortgage lending trends, the real estate market and the U.S. financial landscape in order to help them obtain a home loan that they will love. A recent article published by the website look at some of the interest rate trends of the past few years and gives the projected interest rates for 2014 and beyond.

Loan Love’s mortgage rate forecast for 2014 says, “Things are looking up, at least as far as mortgage rates are concerned as we head into 2014 and even beyond into 2015. Just how far up? The Mortgage Bankers Association experts are predicting in their mortgage interest rates forecast for 2014 that interest rates for a 30-year fixed-rate mortgage are likely to creep pass the 5 percent mark next year and then keep right on trekking upward, with the MBA predicting that rates are likely to climb as high as 5.3 percent by the end of 2015. We have to agree with the forecast for a moderate upward trend through 2014, though we won’t be surprised to see rates stay closer to the 5.1 to 5.2 mark as 2015 draws to a close.”

The article then discusses some of the interest rate trends leading up to the present. It explains that 2012 was a very stable year for mortgage rates, with 30 year fixed rate mortgage rates averaging around the 3.66% mark. However, while 2013 started out with some of the lowest rates in history, this all changed around June, with rates then leaping a half percentage point in July and August. Rates jumped up then back down in the months proceeding, but never reached the lows of earlier in the year.

Loan Love’s article says, “We aren’t going out on much of a limb with our mortgage interest rates forecast by predicting rates are soon going to reach 4.5 percent on their way to the 5 percent mark—and beyond—that we are expecting for 2015. As the economy continues to slowly improve, the Federal Reserve will taper its $85-billion per month bond-purchasing program beginning in early 2014 and likely halt it altogether by September 2014. The Fed’s bond-buying program has been keeping mortgage rates down, but the Fed has hinted in recent months that it plans to wind down the program. The takeaway for you should be that rates are almost certainly headed upward and the better the economy gets, the higher that upward climb is likely to get.”

The article also mentions that the chief economist of Freddie Mac, Frank Nothaft, recently told CNN that he is expecting rates to hit 5 percent as early as mid 2014, and if this happens, Loan Love would likely tweak their estimate of rates staying below the 5.3% mark towards the end of 2015. However, for now Loan Love stands by that figure.

Loan Love says, “Despite the end of the bond-buying program, the temptation to fall into lockstep with Nothaft’s prediction is tempered by the fact that Congressional bickering and threats to close down the government are not exactly the fodder of fast economic growth. Another battle is all but imminent the first six weeks of 2014, when the debt ceiling needs to be lifted again, which we believe could slow the economy and keep interest rates from climbing so quickly, despite the Fed’s actions.”

In the end, Loan Love says, “But overall, 2014 should still be a healthy home-buying year, with plenty of opportunities to purchase as well as lower down payments, and interest rates most buyers will still find very palatable. With interest rates almost certainly to rise as the months tick by, now is the time to get off the fence and look into financing a new home purchase.”

For more information, please read the full mortgage rates forecast at

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Kevin Blue
Loan Love
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