Mortgage Rates Predictions For 2014 Compared To Rates In The Past – Weighs In

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A new article from Loan Love takes a brief look at mortgage interest rates history and explains how to today’s rates stack up in comparison. recently released a new article that takes a look at historical mortgage rates vs. mortgage rates predictions for 2014. This new article continues to further Loan Love’s goal of empowering home loan borrowers with first class knowledge, valuable resources and connections to top rated industry professionals in order to help them to find home loans that they will love.

This new guide from Loan Love, titled, “Mortgage Interest Rates History (Compared To Now)” explains that the ups and downs of mortgage rates can seem mysterious to many home owners; however, understanding some of the most critical factors impacting rates can help home loan borrowers to better interpret some of the mortgage rates predictions for 2014 and beyond, which experts are making all the time. This can be used to the home loan borrower’s advantage when trying to finance their home.

Loan Love goes on to explain some of the historical events which have shaped the mortgage world over the years. The article says, “Late last year, mortgage interest rates fell to their lowest point since 1971 and then continued to drift downward. The year 1971 was one marked by rising inflation and unemployment, trends that would continue to define the next several years. Both fixed-rate and adjustable-rate mortgage rates continued to climb, peaking in the early 1980s at heights about four times what is seen today. While 2013 brought the lowest rates since the early 1970s, other economic conditions from those years were not mirrored so closely. Rather than rising unemployment and surging inflation, 2013 was marked by continued signs of slow, but steady, economic recovery and a housing market that continued to gain a foothold.”

The article goes on to explain that while most experts had predicted significant increases for rates in 2014, so far mortgage rates have resisted conforming to these expectations. Loan Love says, “There was a good reason so many financial analysts and market watchers were predicting that interest rates would begin to rise this year: the Federal Reserve had announced plans to begin easing back on the policies that were known to keep interest rates low. But instead, a surprising thing happened. Rather than starting to float upward as the Feds pulled back, interest rates dropped even lower. That’s not to say rates won’t start moving upward soon, but the predictions that they would do so are not months old.”

Loan Love continues, “So, what is behind today’s low rates? Experts see a number of factors that are influencing interest rates today:

  • Economic growth. Interest rates remain sensitive to inflation, so low inflation contributes to low interest rates.
  • Strong demand for bonds. Strong stock-market gains have helped institutions, like insurance companies, recover from the economic crisis.
  • The Fed. Despite announcing it would allow small, short-term rises in the interest rate, the Fed is on record as stating it’s long-term plans will be to continue to keep interest rates low.”

To learn more about today’s mortgage interest rates and how to take advantage of the current low trends, click here to read the full guide.

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Kevin Blue
Loan Love
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