San Diego, CA (PRWEB) December 21, 2013
LoanLove.com is a borrower advice website that empowers borrowers with first class knowledge, valuable resources and connections to top rated industry professionals. The website claims that it is “NOT another boring, stuffy, “fall asleep in your chair” site about loans.” As such the website strives to provide in-depth information that will help borrowers find the best loan deals, while using easy to understand language and explaining industry terms in a casual and even entertaining way. One of the website’s newest featured articles continues to help mortgage borrowers make informed decisions be answering the question “Will mortgage rates go up in 2014?”
The article explains, “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.”
Loan Love explains that, while 2012 was fairly tranquil with rates averaging about 3.66 percent, 2013 was another matter. After a pretty average beginning of the year, with rates around the 3.4 to 3.5% mark, by June rates had climbed to the 4 percent mark, after which rates started a roller-coaster ride of ups and downs. Loan Love’s interest rate forecast explains,
“Interest rates leaped a half percentage point in July and August, hovering for just a bit at 4.5 percent. Then rates began sliding back down to 4.1 percent in October and holding there, more or less, for the remainder of the fall season before creeping back up to 4.4 percent as the year winds down. 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.”
However, the article also explains that the end of the taper program will likely be tempered by the fact that the government will need to lift the debt ceiling in 2014, which could slow the economy and keep rates from climbing too quickly.
The article ends by noting that higher mortgage rates in 2014 will not be the end of the world for home buyers and owners. It says, “…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 rate forecast for 2014 at LoanLove.com.